Question 3 (2.5 points) The operations of Hon Corporation we did to the west and they wi ll Aloy Division Division 5560000 3336.000 66.000 Variable costs 196.000 154.000 350.000 Contribution $364,000 $182.000 $646.000 margin Fixed costs: Direct 168,000 140.000 300.000 Common 84.000 63.000 147.000 allocated Operating income $112.000 $(21.000) $91.000 If a division is closed, all direct fixed costs but no common allocated fixed costs can be viated. V Aloy is dropped, the operating income for Hart Corporation would Increase by $21,000 O Decrease by $63,000 Increase by $42,000 O Decrease by $42,000 As activity decreases, unit fixed cost O remains constant. o increases with activity. O increases by a fixed amount. o decreases with activity. As activity decreases, unit fixed cost O remains constant. o increases with activity. O increases by a fixed amount. o decreases with activity