Black Productions has three? models: D,? E, and F. The following information is? available: Model D Model E Model F
Sales revenue ?$65,000 ?$33,000 ?$24,000
Variable expenses ?$32,000 ?$13,000 ?$14,000
Contribution margin ?$33,000 ?$20,000 ?$10,000
Fixed expenses ?$16,000 ?$16,000 ?$16,000
Operating income? (loss) ?$17,000 ?$4,000 ?$(6,000)
Black Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Black Productions discontinues model F and rents the space formerly used to produce product F for? $15,000 per? year, what effect will this have on operating? income?