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A company is closing its division which has a contribution margin of 400,000 and overhead allocation to that division is 1,000,000 in this amount 125,000

A company is closing its division which has a contribution margin of 400,000 and overhead allocation to that division is 1,000,000 in this amount 125,000 will not be decreased.Considering that this division will be closed , by how much the company's income will increase?

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