Total Company Eastern Division Western Division
Sales $ 450,000 $ 90,000 $ 360,000
Variable expenses 243,000 27,000 216,000
Contribution margin 207,000 63,000 144,000
Traceable fixed expenses 100,800 46,800 54,000
Division segment margin 106,200 $ 16,200 $ 90,000
Common fixed expenses 72,000
Net operating income $ 34,200

If the company eliminates the Western Division and the Eastern Division sales increase by 10% as a result, how much will the company’s net operating income decrease?