The Discount Division of a Diversified Retailer Has Revenues of $10,000,000,direct

Multiple Choice

The discount division of a diversified retailer has revenues of $10,000,000,direct costs of $8,000,000,and indirect costs of $3,000,000.What is the short-run impact of eliminating this division?

A) The short-run profit will increase by $1,000,000.
B) The short-run profit will decrease by $2,000,000.
C) The short-run profit will decrease by $3,000,000.
D) The short-run impact cannot be determined based on the information provided.