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The following information relates to next year's projected operating results of the Aluminum Division of DG Corporation: Contribution margin ............... $1,500,000 Fixed costs............................ $1,700,000 Net

The following information relates to next year's projected operating results of the Aluminum Division of DG Corporation:

Contribution margin ............... $1,500,000
Fixed costs............................ $1,700,000
Net loss....................... $ (200,000)

If Aluminum Division is dropped, $1,000,000 of the fixed costs above can be eliminated. What will be the effect on DG's profit next year if Aluminum Division is dropped instead of being kept?

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