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Saved Wasilko Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: Help Kids Sales Variable expenses Contribution

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Saved Wasilko Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: Help Kids Sales Variable expenses Contribution Margin Fixed Expenses Net operating income (loss) Department Total Adults $4,200,000 $3,000,000 $1,200,000 2.000.000 1.500.000 500.000 2,200,000 1,500,000 700,000 2.200.000 1.300.000 900.000 0 200,000 (200,000) A study indicates that $100,000 of the fixed expenses being charged to the Adults Department are sunk costs or alocated costs that will continue on the towns Department dropped. In addition, the elimination of the Adults Department will result in a 10% decrease in the sales of the Kids Department. If the Acuts Department copped what will be the effect on the net operating income of the company as a whole? Multiple Choice Decrease by $20,000 Increase by $80,000 Saved Hel ropped. In addition, the elimination of the Adults Department will result in a 10% decrease in the sales of the Kids Department. If the Adults Department is droppen ffect on the net operating income of the company as a whole? Multiple Choice Decrease by $20,000 Increase by $80,000 Decrease by $50,000 Decrease by $80,000

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