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Wasilko Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: Total Sales Variable expenses Contribution Margin Fored

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Wasilko Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: Total Sales Variable expenses Contribution Margin Fored Expenses Net operating income foss) Department Kids Adults $4,200,000 $3,000,000 $1,200,000 2.000.000 1.500.000 500.000 2,200,000 1500,000 700,000 2200.000 1300.000 900.000 0 200,000 200.000) A study indicates that $150,000 of the foed expenses being charged to the Adults Department are sunk costs or allocated costs that will continue even if the Adults Department is dropped. In addition, the elimination of the Adults Department will result in a 10% decrease in the sales of the Kids Department of the Adults Department is dropped, what will be the effect on the net operatin income of the company as a whole? Multiple Choice Increase by $120,000 Decrease by $120,000

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