Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,400. The division sales for the year were $967,600 and the variable costs were $479,000. The fixed costs of the division were $531,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be: $276,200 increase $488,600 decrease $212,400 increase $276,200 decrease $488,600 increase