22. Praline Company is considering whether to discontinue one of its departments, and a study has been conducted for this purpose. The contribution margin in the department is $200,000 per year. The fixed expenses charged to the department are $260,000 per year. It is estimated that $160,000 of these fixed expenses will be eliminated if the department is discontinued. If the department is discontinued, what is the effect on the company's overall net operating income?

The overall net operating income will decrease by $40,000 per year.

The overall net operating income will increase by $40,000 per year.

The overall net operating income will increase by $100,000 per year.

The overall net operating income will decrease by $100,000 per year.

None of the above.