1. Mad Hatter plans to discontinue a department with a contribution margin of $24,000 and overhead of $48,000, of which $21,000 is allocated and cannot be eliminated. The effect of this discontinuance on Mad Hatters pretax profit would be a(n):
   1. Decrease of $3,000
   2. Increase of $3,000
   3. Decrease of $24,000
   4. Increase of $24,000