A Corporation is composed of three divisions. The following...

A Corporation is composed of three divisions. The following information relates to these three Division:

 

A B C

Sales

$7,500,000 $8,000,000 $5,500,000

Variable cost

5,100,000 4,600,000 3,800,000

Contribution margin

2,400,000 3,400,000 1,700,000

Avoidable fixed cost

1,900,000 3,700,000 1,500,000

Operating income

$ 500,000 ($300,000) $ 200,000

The company is considering closing Division B. If division B is closed, then the sales of division C will increase by 5%, while sales of division A will decrease by 20%. What will be the impact on the company's overall profitability if Division B is closed?