Chugg promotes the idea that the company can help students prepare for academic success in college. Chugg operates two divisions: (1) major publishers, and (2) niche publishers for specialized courses. The company is considering the possibility of adding a \"custom" product line that accumulates material from rogue professors who use their own material or test banks. The company's current segment income statement follows: Major Niche Total Sales 5 12,000,000 $ 4,000,000 5 16,000,000 Variable expenses 2,400,000 1,000,000 3,400,000 Contribution margin 9,600,000 3,000,000 12,600,000 Fixed expenses: Traceable AND Controllable 4,100,000 2,400,!!10 6,500,m0 Traceable NOT Controllable 3,000,000 1,800,000 4,300,000 Segment margin 2,500,000 (1,200,000) 1,300,000 Fixed expenses: Common 1,000,000 Net income 5 300,000 The company expects the Custom Division to generate an additional contribution margin of $1,400,000. Custom Division will hire new content managers for $1,000,000. The new product line also would increase sales in the Major Division by 10.0%. However, the Custom Division would reduce the Niche Division sales by 25.0%. Compute the income increase (or decrease) of adding the Custom Division. 0 Income INCREASES $160,000 0 Income INCREASES $360,000 0 Income INCREASES $680,000 0 Income INCREASES $760,000 0 None of the other answers are correct