Iver Roller Skates Has Three Product Lines-D,E,and F The Company Is Deciding Whether to Drop Product Line F

Iver Roller Skates has three product lines-D,E,and F.The following information is available: $$\begin{array} { | l | c | c | c | } \hline & \text { D } & \text { E } & \text { F } \\\hline \text { Sales revenue } & \$ 80,000 & \$ 50,000 & \$ 30,000 \\\hline \text { Variable costs } & \$ ( 40,000 ) & ( 15,000 ) & ( 10,000 ) \\\hline \text { Contribution margin } & \$ 40,000 & \$ 35,000 & \$ 20,000 \\\hline \text { Fixed costs } & \$ 10,000 & \underline { ( 15,000 ) } & \underline { ( 25,000 ) } \\\hline \text { Operating income (loss) } & \$ 30,000 & \$ 20,000 & \$ ( 5,000 ) \\\hline\end{array}$$ The company is deciding whether to drop product line F because it has an operating loss.Assuming fixed costs are unavoidable,if Iver drops product line F and rents the space formerly used to produce product F for $17,000 per year,total income will be ________.

A) $10,000
B) $42,000
C) $20,000
D) $25,000

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