Kule,IncProduces Three Different Lines of Car Racks for Transporting Large,bulky

Multiple Choice

Kule,Inc.produces three different lines of car racks for transporting large,bulky items.
$$\begin{array}{l}\begin{array} { | l | c | c | c |} \hline & \text { Bicycle } & \text { Luggage } & \text { Sks } \\\hline \text { Sales } & \$ 140,000 & \$ 100,000 & \$ 160,000 \\\hline \text { Less: cost of goods sold } & 110,000 & 110,000 & 140,000 \\\hline \text { Net proff } & 30,000 & ( 10,000 ) & 20,000 \\\hline & & & \\\hline & & & \\\hline\end{array}\\\text { Total company net annual profit } = \$ 40,000\end{array}$$ Included in the cost of goods sold is $120,000 of annual rent (a fixed cost) that is distributed equally among the three product lines.
-Refer to Kule,Inc.What will be the effect on total net profit for the company if the line of bicycle racks is dropped?

A) Total net profit will decrease by $10,000.
B) Total net profit will increase by $30,000.
C) Total net profit will increase by $10,000.
D) Total net profit will decrease by $70,000.