Knowledge check 01 chao, inc., a service provider, has two divisions. the firm’s most recent annual contribution format segmented income statement appears below. 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? $83,700 $88,380 $90,000 $137,700 $144,000