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

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

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

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

A) $500,000 decrease

B) $800,000 increase

C) $1,000,000 increase

D) $1,200,000 increase

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