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The following information relates to next year's projected operating results of the Department Division of ABC Corporation: Contribution Margin: $1,800,000 Fixed Expenses : $2,100,000 Net

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

Contribution Margin: $1,800,000

Fixed Expenses : $2,100,000

Net Operating Loss : (300,000)

If the Department Division is eliminated, $1,600,000 of the above fixed expenses could be avoided. What will be the effect on ABC corporation profit next year if Consumer Division is eliminated?

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