Delta Corp. has three divisions. Alpha and Bravo are profitable, while Charlie is losing money. Delta is considering discontinuing the Charlie division. Revenue and cost information is shown below.

Delta Corp. has three divisions. Alpha and Bravo are profitable, while Charlie is losing money. Delta is considering discontinuing the Charlie division. Revenue and cost information is shown below. Bravo Charlie Alpha $197,000 Sales revenue $173,000 $95,000 Variable costs 83,000 46,000 65,000 Fixed costs 83,000 94,000 44,000 If Charlie is discontinued, 55% of its fixed costs would be avoided, while the rest would be absorbed by the other two division. If Charlie is discontinued, net income will: -> increase. (enter 1 below) -> decrease (enter 2 below) -> remain the same (enter 3 below)