Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $102,000 as shown below.

Segment Income (Loss)
Sales	$ 1,127,000
Variable costs	992,000
Contribution margin	135,000
Fixed costs	237,000
Income (loss)	$ (102,000)

If the Windows division is dropped, all of its variable costs are avoidable, and $154,050 of its fixed costs are avoidable. The impact on Gions operating income from eliminating this business segment would be:

Multiple Choice

• $19,050 decrease

• $19,050 increase

• $154,050 decrease

• $154,050 increase

• $18,250 decrease