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Net sales Cost of goods sold Gross profit Operating expenses Loss from operations Department B S 250,000 190.000 $ 60,000 20.000 (30.000 The operating expenses

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Net sales Cost of goods sold Gross profit Operating expenses Loss from operations Department B S 250,000 190.000 $ 60,000 20.000 (30.000 The operating expenses of Department B include S40,000 for direct expenses. It is estimated that the discontinuance of Department B would not have affected the sales of the other departments nor have reduced the indirect expenses of the business. Assuming the accuracy of these estimates, determine the effect (increase or decrease and amount) on the income from operations of the business if Department B had been discontinued

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