Question 6 The Kelso Company has two divisions - Eastern and Western. The divisions have the following revenues and expenses: Sales Total $2,220,000 Eastern $850,000 Western $1,370,000 Variable Cost 820.000 340,000 480.000 Contribution Margin Direct Fixed Costs 1,400,000 510,000 890,000 640,000 270,000 370,000 Allocated Corporate Costs 550,000 Net Income (Loss) 210,000 310.000 (70,000) 240,000 280,000 4 points Save A The management of Kelso is considering the elimination of the Eastern Division. If the Eastern Division were eliminated, the direct fixed costs associated with this division could be avoided. Given these data, the impact on net income of dropping the Eastern division would be: a. $140,000 Decrease b. $30,000 Increase c. $240,000 Decrease d. $70,000 Increase