Percy Productions has three models: D, E, and F. The following information is available: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Model D $68,000 $32,000 $36,000 $17,000 $19,000 Model E $36,000 $13,000 $23,000 $17,000 $6000 Model F $27,000 $14,000 $13,000 $17,000 -$4000 Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Percy Productions discontinues model F and does not replace it, what effect will this have on operating income? Select one: a. Decrease $13,000 b. Increase $13,500 c. Increase $7000 d. Decrease $7000 X The correct answer is: Decrease $13,000