Rabbitt Corporation Is Considering Whether to Discontinue a Division That

Rabbitt Corporation is considering whether to discontinue a division that generates a total contribution margin of $40,000 per year. Fixed manufacturing overhead allocated to this division is $60,000, of which 12,000 is unavoidable. If Rabbitt Corporation were to eliminate this division, the effect on the company's operating income would be a(n)

A) increase in total operating income of $8,000.
B) decrease in total operating income of $8,000.
C) increase in total operating income of $28,000.
D) decrease in total operating income of $28,000.