Calgary Corporation is closing one of its divisions. Operating data on this division follows:

Sales:$80,000

Variable costs:40,000

Overhead:40,000

Overhead consists of $30,000 in salary and $10,000 for rent and insurance. The salary is for the chief engineer, who will continue to work for Calgary even if the division is closed.

Assuming all overhead costs continue to be incurred even if the division closes, what will be the effect on overall company profits of closing the division?

Group of answer choices

A:$10,000 decrease

B:$30,000 decrease

C:$40,000 decrease

D:$40,000 increase