The Most Recent Income Statement for the Venetian Branch of Palm

Multiple Choice

The most recent income statement for the Venetian Branch of Palm Harbor Bank is presented below:
$\begin{array}{ll}\text { Sales } & \$ 57,000 \\\text { Variable costs } & 31,500\\\text { Contribution margin } & 25,500 \\\text { Avoidable fixed costs } & 13,500 \\\text { Unavoidable fixed costs } & 20,000\\\text { Operating loss }&\$(8,000) \end{array}$
Palm Harbor Bank is thinking about eliminating the Venetian Branch.If the branch is eliminated,Palm Harbor Bank's operating income will ________.

A) increase by $8,000
B) increase by $25,500
C) decrease by $12,000
D) decrease by $31,500