The High School Musical Company has two divisions - Troy and Gabriella. In the previous year, Troy generated sales revenue of $300,000 and had total traceable costs of 580.000 $20,000 of which was foxed Gabriella generated a segment margin of $30,000. Common fixed costs totaled $170,000, 550,000 of this amount was alocated to the Gabriella division Management is considering the elimination of the Gabriella division since it has shown an operating loss for the past several years. Gabriella is dropped, the company would open a new division in its place. The new division would generate $175,000 in sales revenue and have a contribution margin percentage equal to 60% The new division's traceable fixed costs would total $25,000. In addition, it is projected that opening the new division would increase Troy's sales volume by 3% Which of the following statements is correct with regard to the above information? (each statement is independent) A Total traceable costs for the new division is $25,000 OB. The company's operating income will differ depending on if the income statement is prepared using the traditional approach of the contribution margin approach OC The company's common fixed costs would decrease by $50,000 if Gabriella is dropped OD, Troy's contribution margin percentage increases by 3% # Gabriella is dropped and replaced with the new division DE I Gabriella is dropped and replaced with the new division, the company's operating income would increase by 557 200