Sales Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format income statement follows: Variable expenses Contribution Margin Fixed Expenses Net operating income (loss) Total Department Toys Candy $4,200,000 $3,000,000 $1,200,000 2.200.000 2.000.000 1.500.000 500.000 2,200,000 1,500,000 700,000 1.300,000 900.000 o 200,000 (200,000) Save & EXIT AK study indicates that $300,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if the Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 10% decrease in the sales of the Toys Department. Q) If the Candy Department is dropped, what will be the effect on the net operating income of the Corporation as a whole? Multiple Choice Decrease by $250,000 Decrease by $240.000 < Prev 11 of 20 Next MacBook Ale 0