Correct answer plz

Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $52,000 as shown below. If the backpack division is dropped, all $495,000 of its variable costs are avoidable, and $222,800 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be: Multiple Choice $505,000 decrease $222,800 increase Multiple Choice $505,000 decrease $222,800 increase $282,200 decrease $505,000 increase $282,200 increase