Accelerate Rollerblades has three product lineslong dash$$D$,$E$,$ and F$.$ The following information is$$ available:

D

E

F

Sales revenue

$ $80$ comma $000$$$80,000$

$ $50$ comma $000$$$50,000$

$ $31$ comma $000$$$31,000$

Variable costs

$(20$ comma $00020,000)$

$(15$ comma $00015,000)$

$(12$ comma $00012,000)$

Contribution margin

$ $60$ comma $000$$$60,000$

$ $35$ comma $000$$$35,000$

$$$$19$ comma $00019,000$

Fixed costs

$(10$ comma $00010,000)$

$(10$ comma $00010,000)$

$(24$ comma $00024,000)$

Operating income$($loss$)$

$ $50$ comma $000$$$50,000$

$ $25$ comma $000$$$25,000$

$$$$(5$ comma $0005,000)$

The company is deciding whether to drop product line F because it has an operating loss. Assume that $ $15$ comma $000$$$15,000$ of total fixed costs could be eliminated by dropping F$.$ What effect would this decision have on operating$$ income?

Question content area bottom

Part $1$

A$.$

Operating income will increase by $ $34$ comma $000$$$34,000.$

B$.$

Operating income will decrease by $ $15$ comma $000$$$15,000.$

C$.$

Operating income will decrease by $ $4$ comma $000$$$4,000.$

D$.$

Operating income will increase by $ $19$ comma $000$$$19,000.$