Typical monthly operating income performance for Division X of XYZ Incorporated is as follows: Sales Variable expense Contribution margin Fixed expense Operating income $ 160,000 120,000 $ 40,000 50,000 $ (10,000) XYZ Incorporated is considering discontinuing Division X and has determined that 50% of fixed expenses are common to all XYZ divisions and that 50% are direct fixed expenses of Division X. If Division X is discontinued, the impact on XYZ's operating Income will be: Multiple Choice a $15,000 loss of operating income a $25,000 increase in operating income. 4