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Dalton Company follows a policy of allocating all common costs equally among its profit centers. A partial responsibility income statement for a typical month is

Dalton Company follows a policy of allocating all common costs equally among its profit centers. A partial responsibility income statement for a typical month is shown below:

Dalton Company Profit Center 1 Profit Center 2 Profit Center 3
Responsibility margins $ 218,000 $ 86,000 $ 76,000 $ 56,000
Common fixed costs $ 181,200 $ 60,400 $ 60,400 $ 60,400
Income from operations $ 36,800 $ 25,600 $ 15,600 $ (4,400)

After evaluating these data, Dalton Company decides to close Profit Center 3. This action eliminates all revenue, variable costs, and fixed costs traceable to Center 3, but eliminates only $39,800 in common fixed costs. Closing Profit Center 3 has no effect upon the responsibility margins of Centers 1 and 2.

Closing Profit Center 3 should cause Dalton's monthly operating income to:

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