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Based on the following analysis of last year's operations of Moline Inc., a financial vice president of the company believes that the firm's total net income could be increased by $500,000 if its design division were discontinued. (Amounts are given in thousands of dollars.) Required: a. Assuming that total fixed costs and expenses would not be affected by discontinuing the design division, compute the increase (decrease) in net income. b. Assume that discontinuance of the design division will enable the company to avoid 70% of the fixed portion of product costs and 80% of the fixed operating expenses allocated to the design division. Calculate the increase (decrease) in net income