Penn Corporation Contribution Margin Income Statement For the Year Ended December 31 Product Lines Department 1 Departments 2-4 Totals Sales Revenue Less: Variable Costs: $152,000 $900,000 $2,880,000 $114.000 $540,000 $1.945.000 Contribution Margin. $38,000 $360,000 $935,000 Less: Fixed Costs Manufacturing OH $27,000 $150,000 $413,500 Marketing & Admin. $20,000 $120,000 $288,000 Operating Income $(9,000) $264,000 $233,500 (loss) Penn Corporation has four departments, all of which appear to be profitable, except for department 1. If department 1 is discontinued, all the fixed manufacturing overhead, and $12,000 of the fixed marketing and admin. costs could be avoided. What is the financial advantage (disadvantage) of discontinuing department 1? Multiple Choice $1,000 $23,000