Wedding Supply Is Trying to Decide Whether or Not to Continue

Multiple Choice

Wedding Supply is trying to decide whether or not to continue distributing reception supplies.The following information is available for Wedding Supply's business segments. $\begin{array}{lrrr}&\text { Reception Supplies }&\text { Bridal Dresses }&\text { Floral Decorations }\\\hline\text { Sales } & \$ 160,000 & \$ 110,000 & \$ 210,000 \\\text { Variable costs } & 84,000 & 50,000 & 120,000\\\text { Contribution margin } & 76,000 & 60,000 & 90,000 \\\text { Direct fixed costs } & 50,000 & 20,000 & 25,000 \\\text { Allocated common fixed costs } & 30,000 & 25,000 & 30,000 \\\text { Net income }&(\$4,000) &\$15,000&\$35,000\end{array}$ If reception supplies are dropped, what change will occur to profit?

A) Decrease by $26,000
B) Decrease by $76,000
C) Increase by $4,000
D) None of these answer choices are correct.