Donnelly Company Has Three Products, R2, R4, and R2D2

Multiple Choice

Donnelly Company has three products, R2, R4, and R2D2. The following information is available:
-Donnelly Company is thinking of dropping Product R2D2 because it is reporting a loss.Assuming Donnelly drops Product R2D2 and does not replace it,operating income will:

A) increase by $1,200.
B) increase by $1,500.
C) decrease by $1,500.
D) decrease by $2,700.