Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $89,000 as shown below.

Segment Income (Loss)
Sales	$ 1,114,000
Variable costs	979,000
Contribution margin	135,000
Fixed costs	224,000
Income (loss)	$ (89,000)

If the Windows division is dropped, all of its variable costs are avoidable, and $145,600 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would be:

a. $9,800 decrease

b. $10,600 increase

c. $145,600 decrease

d. $145,600 increase

e. $10,600 decrease (Incorrect answer)