Product D Incurred a Net Loss of $40 000 During

Multiple Choice

Product D incurred a net loss of $40 000 during the most recent accounting period, calculated as follows:
$$\begin{array} { l l } \text { Sales } & \$ 300000 \\\text { Variable Costs } & ( 150000 ) \\\text { Fixed Costs } & ( 190000 ) \\\text { Net Loss } & \underline { \$ ( 40000 ) }\end{array}$$ An analysis of the fixed costs reveals that $120 000 are avoidable and $70 000 are unavoidable. Profit for the business would increase or decrease by what amount if Product D is discontinued?

A) $30 000 decrease
B) $80 000 decrease
C) $150 000 increase
D) $40 000 increase.