The Mart, a large retail chain, is considering whether or not to close down a division. The division's projected income statement for the next year follows.

Sales $20,000,000

Cost of goods sold 17,000,000

Gross profit 3,000,000

Operating costs:

Building rents $2,500,000

Store clerk salaries 3,000,000

Store utilities 1,200,000

Allocated home office cost 700,000

Total operating costs 7,400,000

Anticipated loss ($4,400,000)

The building rents arise from long-term leases that cannot be cancelled. If The Mart closed down this division, what would be the increase in company profits?

(A) $700,000

(B) $1,200,000

(C) $3,000,000

(D) $4,400,000