Shelley Company has five divisions. They plan to drop one division with the following information:

Sales	$50,000
Variable Costs	30,000
Contribution Margin	20,000
Fixed Expenses	50,000
Income	($30,000)

Of the Fixed Expenses charged to this division, $20,000 are sunk and the rest can be eliminated if the division is dropped. The effect of dropping the division on Shelley Company income would be:

Group of answer choices

a decrease of $20,000

an increase of $20,000

an increase of $25,000

an increase of $10,000

a decrease of $15,000