Gastonia, Inc., a service provider, has two divisions-Eastern and Western.

The firms annual contribution format segmented income statement appears below.

Company Eastern Western

Sales 450,000 90,000 360,000

Variable expenses 243,000 27,000 216,000

Contribution margin 207,000 63,000 144,000

Traceable fixed expenses 100,800 46,800 54,000

Division segment margin 106,200 16,200 90,000

Common fixed expenses 72,000

Net operating income $34,200

The company will eliminate the Western Division.

The Eastern Division sales will increase by 10%.

How much will the companys net operating income decrease?

Group of answer choices

$77,400

$83,700

$71,100

$64,800