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North Division has the following information: Sales$1170000Variable expenses655000Fixed expenses620000 If this division is eliminated, the fixed expenses will be allocated to the company's other divisions.

North Division has the following information:

Sales$1170000Variable expenses655000Fixed expenses620000

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

$550000 increase

$515000 decrease

$620000 decrease

$105000 increase

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