Please provide explanation. Thank you.

Close/Keep a Division (or Plant or Product) A company division has the following divisional income statement: Revenue 200,000 Variable cost 110,000 Contribution margin 90,000 Fixed cost Salaries (If close, employees will be dismissed) 60,000 Depreciation (If close, equipment will be discarded) 20,000 Utilities (If close, utilities will be disconnected) 15,000 95,000 Operating income (loss) .(5,000) The net effect of closing the division will be: Increase operating income by $5,000 Lower operating income by $15,000 Lower operating income by $30,000 O Lower operating income by $65,000 Lower operating income by $70,000