Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $255,000 as shown below. Segment Income (Loss) If the Small Tools Division is dropped, all of its variable costs are avoidable, and $117,000 of its fixed costs are avoidable. The impact on Carns's income from eliminating the Small Tools Division would be: $18,000 decrease $39,900 decrease $117,000 decrease $18,000 increase