Consider the Following Portion of a Segmented Income Statement for the Year

Consider the following portion of a segmented income statement for the year just ended. Assume that the fixed expenses of Division X include $30,000 of direct expenses and that the discontinuance of the department will not affect the sales of the other departments nor reduce the common expenses. Division X
What would be the effect on the firm's operating income if Division X were discontinued?

A) increase $10,000
B) decrease $40,000
C) decrease $100,000
D) decrease $10,000

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