please explain

Yuwanga company has three business segments, two of which are profitable and the other which has been experiencing recurring losses. For the current year, the following information is available for the unprofitable segment: Sales $240000 Variable expenses 120000 Contribution margin 120000 Fixed expenses 140000 Net loss $(20000) If this segment is eliminated, 70% of the fixed expenses can be eliminated and the other 30% will be allocated to the remaining segments. If management decides to eliminate this segment, the company's net income will Increase by $20000 decrease by $98000 decrease by $22000 increase by $22000