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Pet Pals has two product lines: dog houses & dog toys. Income statement data for...

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Accounting

Pet Pals has two product lines: dog houses & dog toys. Income statement data for the most recent year follows:
Total Dog Houses Dog Toys
Sales $1,026,000 $840,000 $186,000
Variable Costs $456,000 $336,000 $120,000
Contribution Margin $570,000 $504,000 $66,000
Fixed Costs $190,000 $95,000 $95,000
Operating Income (Loss) $380,000 $409,000 $ (29,000)
Assuming the Dog Toys line is discontinued, total fixed costs decrease by $50,000, and the space formerly used to produce the line is rented for $12,000 per year, operating income will
by
.(Your first blank should contain the word "increase" or "decrease" and the second blank should contain the dollar amount.)

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