North Division has the following information:

If this division is eliminated, the fixed costs will be allocated to the company's other divisions. What is the incremental effect on net

income if the division is dropped?

$$118000$ increase

$$283000$ decrease

$$401000$ decrease

$$197000$ increaseNorth Division has the following information:

Sales

$$598000$

Variable costs

$315000$

Fixed costs

$401000$

If this division is eliminated, the fixed costs will be allocated to the company's other divisions. What is the incremental effect on net income if the division is dropped?

O $$118000$ increase

O $$283000$ decrease

O $$401000$ decrease

O $$197000$ increase