ACE-757 Inc. has a shoes and a shirts division. The company reported the following segmented income statement for last month Division Shoes Total Shirts Sales $4,200,000 $3,000,000 $1,200,000 Vanable expenses 2.000.000 1.500.000 500.000 Contribution Margin 2,200,000 1,500,000 700,000 Fixed Expenses 2.200.000 1.300.000 900.000 Net operating income possi 0 200,000 (200,000) The company predicts that $50,000 of the fixed expenses being charged to the Shirts Division are allocated costs that will continue even if the Shirts Division is etminated. The elimination of the Shirts Division will additionally cause a 20% drop in Shoes Division sales. If the company shuts down its Shirts Division, by how much will the company's overall net operating income change? Multiple Choice Multiple Choice O O Decrease by $140,000 Decrease by $160,000 Increase by $160,000 Decrease by $150,000