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

Cambridge 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.Assume that $21,000 of total fixed costs could be eliminated by dropping F.What effect would this decision have on operating income?

A) Operating income will increase by $23,000.
B) Operating income will increase by $1,000.
C) Operating income will decrease by $23,000.
D) Operating income will decrease by $1,000.