This is the work I did below to solve, is 130000 correct or incorrect? Please leave detailed explanation for this if incorrect. Type text) 17.

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This is the work I did below to solve, is 130000 correct or incorrect? Please leave detailed explanation for this if incorrect.

Type text) 17. Danny's Bike Company (DBC) manufactures racing bikes and dirt bikes. DBC operates the racing bike division and the dirt bike division as separate business segments. DBC has prepared the following segmented income statement: Total Company $750,000 Racing Bikes Dirt Bikes $500,000 $250,000 Revenue Variable Expenses: Cost of goods sold Other variable expenses Total variable expenses $340,000 90,000 430,000 200,000 60,000 260,000 140,000 30,000 170,000 Contribution Margin Traceable Fixed Expenses Divisional Segment Margin Common Fixed Expenses Net Operating Income $320,000 190,000 $130,000 60,000 $70,000 $240,000 100,000 $140,000 $80,000 90,000 ($10,000) DBC is contemplating closing the Dirt Bike Division. If they do that they expect to increase racing bike production and sales by 50% without increasing that division's fixed expenses. If DBC closes the dirt bike division, how much will DBC's operating income increase? a. $40,000 b. $120,000 C. $10,000 (80,000 @ $130,000 e. $110,000 90,000 TFE Avoided saved la0000 250,000 X.48 = 12000G 130 000 indicar incm