Karlson Roller Skates Has Three Product Lines-D,E,and F

Karlson Roller Skates has three product lines-D,E,and F.The following information is available:

The company is deciding whether to drop product line F because it has an operating loss.Assuming fixed costs are unavoidable,if Karlson drops product line F and rents the space formerly used to produce product F for $20,000 per year,total operating income will be ________.

A) $12,000
B) $67,000
C) $18,000
D) $23,000