The following information relates to next year's projected operating results of the Aluminum Division of DG Corporation:
Contribution margin ............... $1,500,000
Fixed costs.............................. $1,700,000
Net loss................................... $ (200,000)
If Aluminum Division is dropped, $1,000,000 of the fixed costs above can be eliminated. What will be the effect on DG's profit next year if Aluminum Division is dropped instead of being kept?
A) $500,000 decrease
B) $700,000 increase
C) $800,000 increase
D) $1,000,000 increase
E) $1,200,000 increase