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What will be the result on overall operating income

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Question - Titanium Industries is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $350,000 per year. The fixed costs charged to the division total $245,000, but $205,000 would be eliminated if the division was discontinued. If the division is eliminated, what will be the result on overall operating income?

It would increase by $205,000.

It would decrease by $350,000.

It would decrease by $105,000.

It would decrease by $145,000.

Reference no: EM133014386

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