Camera Corner is considering eliminating Model AE2 from its camera line because of losses over the past quarter. The past three months of information for Model AE2 are summarized below: $300,000 Sales (1,000 units) Manufacturing costs: Direct materials Direct labor ($15 per hour) Overhead Operating loss 150,000 62,500 100,000 ($10,000) Overhead costs are 70% variable and the remaining 30% is fixed costs. If Model AE2 is dropped, 25% of fixed overhead costs can be saved. If Model AE2 is dropped from the product line, operating income will: OA) increase by $10,000 B) decrease by $10,000 C) increase by $30,000 D) decrease by $20,000