13 01:27:09 KVHZUM123 Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format income statement follows: Department Total Toys Candy Sales Variable expenses Contribution Margin Fixed Expenses $4,200,000 $3,000,000 $1,200,000 2.000.000 1.500.000 500.000 2.200,000 1,500,000 2.200.000 1.300.000 700,000 Net operating income (loss) 0 200,000 900.000 (200,000) 1600 A KVHZUM123's study indicates that $250,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue e Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 20% decrease in the sales of the Toys Department Qf the Candy Department is dropped, what will be the effect on the net operating income of the KVHZUM123 Corporation as a whole? Multiple Choice O Decrease by $370,000 increase by $370,000 Detree by $330.000 < Play 13 of 20 Next >>