Division Total Shoes Shirts Sales $4,200,000 $3,000,000 $1,200,000 16 Variable expenses 2,000,000 1,500,000 500,000 Contribution Margin 2.200.000 1,500,000 700,000 H Fixed Expenses 2,200,000 Net operating Income (loss) D 1,300,000 200,000 900.000 (200.000) The company predicts that $100,000 of the fixed expenses being charged to the Shirts Division are allocated costs that will continue even if the Shirts Division is eliminated. The elimination of the Shirts Division will additionally cause a 20% drop In Shoes Division sales. If the company shuts down its Shirts Division, by how much will the company's overall net operating Income change? Multiple Choice Decrease by $200,000 O Decrease by $240,000 Decrease by $160,000 Increase by $240,000