State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past quarter. The past three months of Information for Model A02777 are summarized below: Sales (1.100 units) $370,000 Manufacturing costs Direct materials 160,000 Direct labor ($15 per hour) 80,000 Overhead 150,000 Operating loss (520,000) Overhead costs are 75% variable and the remaining 25% is depreciation of special equipment for model A02777that has no resale value 1 Model 02717 is dropped from the product line, operating income wil O A decrease by $17.500 OB. decrease by $20,000 OC. Increase by $37,500 OD. Increase by $20,000