Below are the results for both sectors for 2020 K Y Sales 2,000000 4,000,000 Variable costs 600 000 1 600 000 Margin on variable costs 1400 000 2400 000 Fixed costs 1800 000 1 800 000 Net profit $ (400,000) 600,000 According to a study, $670,000 of the fixed costs in Division K are sunk costs, and eliminating Division K would increase Division Y's sales by 20% with no effect on Division Y's fixed costs. What would be the effect of terminating Division K on the profit of the entire company? The company's net income increases by $210,000 No answer is appropriate The company's net income decreases by $400,000 The company's net income increased by $530,000 The company's net income increased by $400,000