Question: The budget committee would not normally include the external auditor. treasurer. sales manager. North Division has the following information: Sales $1190000 Variable expenses 639000 Fixed

The budget committee would not normally include the

external auditor.

treasurer.

sales manager.

North Division has the following information:

Sales	$1190000
Variable expenses	639000
Fixed expenses	620000

If this division is eliminated, the fixed expenses will be allocated to the companys other divisions. What is the incremental effect on net income if the division is dropped?

$620000 decrease

$551000 decrease

$570000 increase

$69000 increase

research director.

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