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Lux Company operates three departments within its store and has the following information. Dept A Dept B Dept C Total Sales revenue 150,000 90,000 60,000

Lux Company operates three departments within its store and has the following information.

Dept A Dept B Dept C Total
Sales revenue 150,000 90,000 60,000 300,000
Variable Costs 90,000 45,000 42,000 177,000
Fixed Costs (Allocated) 50,000 40,000 30,000 120,000
Income (Loss) 10,000 5,000 (12,000) 3,000

If Department C is eliminated, sales in Departments A & B will each decrease by 10% and $25,000 of the fixed costs allocated to Department C can be eliminated.

What is the increase or decrease in the company's net income if Department C is eliminated? If it is a decrease use a negative sign.

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