Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $$96,000.$ Division sales for the year were $$1,420,000$ and its variable costs were $$1,285,000.$ The fixed costs of the division were $$330,000.$ If the kitchen division is dropped, $30\%$ of the fixed costs allocated it could be eliminated. The impact on Carns's operating income from eliminating the small tools division would be:

$$99,000$ decrease

$$99,000$ increase

$$75,300$ decrease

$$36,000$ increase

$$36,000$ decrease