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TOTAL 250,000 120,000 130,000 DIVISION A 100,000 55,000 45,000 15,000 DIVISION B 150,000 65,000 85,000 50,000 35,000 Sales Less: Variable Expenses Contribution Margin Less: Traceable

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TOTAL 250,000 120,000 130,000 DIVISION A 100,000 55,000 45,000 15,000 DIVISION B 150,000 65,000 85,000 50,000 35,000 Sales Less: Variable Expenses Contribution Margin Less: Traceable Fixed Expenses Segment Margin Less: Common Fixed Expenses Net Income 80,000 30,000 50,000 25,000 55,000 If Division A were eliminated, what would the effect be to the COMPANY'S net income? a. Net income would increase by $30,000 b. Net income would increase by $15,000 Oc. Net income would decrease by $30,000 d. Net income would decrease by $15,000

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