A study has been conducted to determine if Product A should be dropped. Sales of the product total \$200,000 per year; variable expenses total \$140,000 per year. Fixed expenses charged to the product total \$90,000 per year. The company estimates that \$40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would:
a. decrease by \$20,000 per year.
b. increase by \$20,000 per year.
c. decrease by \$10,000 per year.
d. increase by \$30,000 per year.