Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line: Orange Tomato Carrot Grape Sales $60,000 $32,000 $24,000 $44,000 Variable expenses 22,800 11,200 12,000 17,600 Contribution Margin $37,200 $20,800 $12,000 $26,400 Traceable fixed expenses 12,000 8,000 9,000 6,600 Segment margin $25,200 $12,800 $3,000 $19,800 Net operating income last year for Licuado Company as a whole was $24,800. If the Carrot product line would have been dropped at the beginning of last year, how would this have changed the net operating income of Licuado Company as a whole?
a.) $2,400 increase
b.) $3,000 decrease
c.) $5,400 increase
d.) $12,000 decrease