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Culbertson Co. is considering closing down one of its divisions. The division presently has a contribution margin of $550288. Overhead allocated to the division is

Culbertson Co. is considering closing down one of its divisions. The division presently has a contribution margin of $550288. Overhead allocated to the division is $932584, of which $101766 cannot be eliminated. If this division were discontinued, by what amount would Culbertsons pretax income increase (decrease)?

Select one:

a. $550288

b. $382296

c. $280530

d. $101766

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