Diva Footwear is contemplating if it should continue producing platform shoes. The following information is available for the company's segments.

Platform ShoesAthletic ShoesBoots

Sales $120,000 $420,000 $360,000

Variable costs64,000220,000140,000

Contribution margin 56,000 200,000 220,000

Direct fixed costs 45,000 70,000 90,000

Allocated fixed costs20,00070,00060,000

Net income ($ 9,000) $ 60,000 $ 70,000

If platform shoes are dropped, sales of athletic shoes are expected to drop by 10%. What impact will occur to Diva Footwear's net income?

A.Income will decrease by $11,000

B. Income will decrease by $31,000.

C. Income will decrease by $53,000

D. Income will increase by $9,000.