Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $135,000 as shown below. If the Small Tools Division is dropped, all of its variable costs are avoidable, and $108,000 of its fixed costs are avoidable. The impact on Carns's income from eliminating the Small Tools Division would be: $27,000 increase $27,000 decrease $108,000 decrease $270,000 decrease $56,700 decrease