Epsilon Company is trying to decide whether or not to close Division A. The total contribution margin for Division A is $450,000 and the total fixed costs are $600,000, of which $200,000 are allocated and would have to be absorbed by other division in the company. What is the effect on total net income for Epsilon if Division A is closed?

a $150,000 increase

b $50,000 decrease

c $150,000 decrease

d none of these