The Most Recent Income Statement for the Parma Branch of the Dinero

Multiple Choice

The most recent income statement for the Parma Branch of the Dinero Company is presented below. $$\begin{array} { l r } \text { Sales } & \$ 57,000 \\\text { Variable costs } & \underline { 31,500 } \\\text { Contribution margin } & \$ 25,500 \\\text { Fixed costs: } & \\\text { Avoidable } & 13,500 \\\quad \text { Unavoidable } & \underline { 18,000 } \\\text { Operating income } & \underline { \$ 6,000 } ) \end{array}$$ If the Parma Branch is eliminated and the space is rented for $24,000, operating income will be _____.

A) increased by $24,000
B) decreased by $30,000
C) increased by $12,000
D) decreased by $12,000