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A Company has 2 divisions: The Good Division shows Net Income of $400,000, The Not So Good Division has a Net Loss of $300,000. Now

A Company has 2 divisions: The Good Division shows Net Income of $400,000, The Not So Good Division has a Net Loss of $300,000. Now the Not So Good was charged allocated fixed costs of $200,000. If the Not So Good Division closed, the allocated fixed costs will Not Be Eliminated.

*But, If the Not So Good Division is closed immediately, will my company become:

A. More profitable by $300,000

B. More profitable by $200,000

C. More profitable by $100,000

D. Less profitable by $ 100,000

E. Less profitable by $300,000

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