What is the correct answer?

Percy Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $70,000 $36,000 $24,000 Variable expenses $33,000 $14,000 $14,000 Contribution margin $37,000 $22,000 $10,000 Fixed expenses $16,000 $16,000 $16,000 Operating income (loss) $21,000 $6,000 ($6 000) Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assuming Percy Productions discontinues line F and is able to double the production and sales of model E without increasing fixed costs. What effect will this have on operating income? O A. Increase $12,000 O B. Decrease $12,000 O C. Increase $33,000 O D. Decrease $33,000