Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $91,000 as shown below.

Segment Income (Loss)
Sales	$ 1,116,000
Variable costs	981,000
Contribution margin	135,000
Fixed costs	226,000
Income (loss)	$ (91,000)

If the Windows division is dropped, all of its variable costs are avoidable, and $146,900 of its fixed costs are avoidable. The impact on Gions operating income from eliminating this business segment would be:

Multiple Choice

$11,900 decrease

$11,100 decrease

$146,900 decrease

$11,900 increase

$146,900 increase