During the Most Recent Accounting Period, Product a Provided a Contribution

Multiple Choice

During the most recent accounting period, Product A provided a contribution margin of $33 000, but after all costs were allocated, the product incurred a net loss of $20 000. Analysis by the business' controller indicates that $22 000 of fixed costs could be avoided if Product A were dropped. By what amount would the business' profit change if Product A is discontinued?

A) Decrease by $10 000
B) Increase by $10 000
C) Decrease by $11 000
D) Increase by $13 000