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 $110,000 of its fixed costs are avoidable. The impact on Sammy's operating income from eliminating the commercial division would be: Sales Garden $ 688,000 382,900 Farmi $950,000 Commercial $722,000 659,800 424,000 Variable costs Contribution margin 305,100 526,000 62,200 Fixed costs 257,200 345,500 290, 400 Net income (loss) 47,900 180,500 (228,200) Multiple Choice $8,200 decrease $15.000 Increase $47,800 increase