Wasilko Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: 15 Total Sales & USB Variable expenses Contribution Margin Fed Expenses Net operating income (los) $4,200,000 2.000.000 2,200,000 2.200.000 Department Kids Adults $3,000,000 $1200,000 1.500.000 500.000 1,500,000 700.000 1.300.000 900.000 200.000 (200,000) A study indicates that $250,000 of the fed expenses being charged to the Aduits 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 30% decrease in the sales of the Kids Department. If the Aduits Department is dropped, what will be the effect on the net operating income of the company as a whole? Multiple Choice Decrease by $540,000 Increase by $540,000