Assume That Discontinuing the Manufacture and Sale of Tams Will

Assume that discontinuing the manufacture and sale of Tams will have no effect on the sale of other product lines.If the company discontinues the Tam product line,what will be the change in the annual operating income (loss) ?

A) $55,000 decrease.
B) $65,000 decrease.
C) $70,000 increase.
D) $90,000 decrease.Fixed costs avoided = 275,000 + 25,000 = 300,000.