due to elimination
income will decrease by $526000
Explanation:
Given data
Sales = Â $1180000 Â
Variable expenses = $654000 Â
Fixed expenses = Â $620000
to find out
incremental effect on net income
solution
we know here total sale is $1180000 and Variable expenses is  $654000
so contribution  if the division is dropped is sales - Variable expenses
put these value
contribution = 1180000 - 654000
contribution = 526000
so we say that due to elimination
income will decrease by $526000