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Pepmiller Company expects its three departments to yield the following income for next year: Refrigerators Mattresses 8000 Sales 6000 7000 Expenses Avoidable 2000 3000 4000

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Pepmiller Company expects its three departments to yield the following income for next year: Refrigerators Mattresses 8000 Sales 6000 7000 Expenses Avoidable 2000 3000 4000 1500 2500 4500 Unavoidable Total expenses Net Income (loss) 3500 5500 8500 2500 1500 L 500) Compute the change to Pepmillers's total net income if the Mattress Department is eliminated. $4000 decrease $500 decrease

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