Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are avoidable, and $103,000 of its fixed costs are avoidable. The impact on Sammy's operating income from eliminating the commercial division would be: Sales Garden $ 684,000 Farm Commercial $ 929,000 $ 701,000 Variable costs 375,900 417,000 652,800 Contribution margin 308,100 512,000 48,200 Fixed costs 250,200 338,500 255,500 Net income (loss) 57,900 173,500 (207,300) Multiple Choice $1,300 decrease $27,000 increase $54,800 increase $9,000 increase