a) decrease by 140k

b) increase by 140k

c) decrease by 60k

d) decrease by 100k

e) increase by 100k

A company has two departments, Kids and adults. The company's most recent monthly contribution format income statement follows: Variable expenses Contribution Margin Fed Expenses Net operating income Department Total Aduits $4,200,000 $3.000.000 $1200,000 2.000.000 1.500.000 500.000 2,200.000 1500,000 700.000 2.200.000 1.300.000 900.000 0 200.000 (200,000) A study indicates that $150,000 of the fored expenses being charged to the Adults Department are sunk costs or alocated costs that will continue even if the Adults Department is dropped. In addition the elimination of the Aduits Department will result in a 10% decrease in the sales of the Kids Department. If the Adults Department is dropped, what will be the effect on the net operating income of the companys