Wedding Supply is trying to decide whether or not to continue distributing reception supplies. The following information is available for Wedding Supply's business segments.

Reception SuppliesBridal DressesFloral Decorations

Sales $160,000 $110,000 $210,000

Variable costs84,00050,000120,000

Contribution margin 76,000 60,000 90,000

Direct fixed costs 50,000 20,000 25,000

Allocated common fixed costs30,00025,00030,000

Net Income ($ 4,000) $ 15,000 $ 35,000

If reception supplies are dropped, floral decorations sales are expected to increase by 20%. What impact will the increase in floral decorations have on overall profitability?

A. Income will increase by $7,000.

B. Income will increase by $16,000.

C.Income will decrease by $18,000.

D.Income will decrease by $8,000.