Market has three divisions (Chad, Talbot, and Heather) with the following information: Chad Talbot Heather Total $60,000 $50,000 $40,000 $150,000 $35,000 $28,000 $30,000 $93.000 $25,000 $22,000 $10,000 $57,000 $5,500 $4.500 $6.500 $16.500 $19,500 $17,500 $3,500 $40,500 Segment Margin Less: Common Fixed Costs $11,000 $10.500 $6.000 $27.500 Net Operating Income (Loss) $8.500 $7.000 ($2.500) $13.000 Sales Revenue Var, cost CM Less: Direct Fixed Cost Now suppose that $4,000 of the common fixed costs could be avoided if the Heather division was eliminated. Now how much will Market's net operating income increase or decrease if Heather is eliminated? $500 increase O $500 decrease O $1,500 decrease $1.500 500 increase

Now suppose that $4,000 of the common fored costs could be avoided if the Heather division was eliminated. Now how inuch will Marhet's net operatiry income increase or decrease if Heather is elininated? $500 hacene Pirooincrase