Question 23 2 Rockwell Company owns a single restaurant which has a cantina primarily used to seat patrons while they want on their abies. The company's cantina and adding more dining tables Segmented contribution income statements are as follows and fred costs applicable to both or wind on the sales. Sales Variable costs Direct fixed costs Allocated fixed costs Net Income Restaurant $800,000 475,000 50,000 212.500 5.62.500 Cantina $200,000 160,000 15.000 37.500 ($12.500) Total 51.000.000 635,000 65.000 250.000 $50.000 What financial effect will occur to profit if Rockwell eliminates the cantina? Net Income will increase by $12.500 Net Income will decrease to $37,500. Net income will decline by $25,000 Net income will be $25,000