Question - A business has three product lines: small, medium, and large speakers. The small speaker line has a loss from operations of $25,000, while the medium and large speaker lines have a combined income from operations of $100,000. The total fixed costs of $50,000 are allocated on the basis of sales volume across the three product lines. The small product line has 30% of the sales volume. What is the differential income or loss from discontinuing the small speaker product line?
A. $10,000 income
B. $25,000 income
C. $10,000 loss
D. $15,000 loss