1.

The following information relates to next year's projected operating results of the Consumer Division of Nampa Corporation:

Contribution margin	$1,800,000
Fixed expenses	2,100,000
Net operating loss	($300,000)

If the Consumer Division is eliminated, $1,600,000 of the above fixed expenses could be avoided. What will be the effect on Nampa's profit next year if Consumer Division is eliminated?

A.	$300,000 decrease

B.	$300,000 increase

C.	$200,000 decrease

D.	$200,000 increase