alber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $154,000 of the fixed costs allocated to that division could be eliminated. The impact on Valbers operating income from eliminating the phone division would be: Desktops Laptops Tablets Phones Sales $ 368,000 $ 883,500 $ 706,000 $ 979,000 Variable costs 205,000 639,000 532,000 799,000 Contribution margin 163,000 244,500 174,000 180,000 Fixed costs 75,200 178,300 142,800 199,000 Net income (loss) 87,800 66,200 31,200 (19,000