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 $114,000 of its fixed costs are avoidable. The impact on Sammys operating income from eliminating the commercial division would be: Garden Farm Commercial Sales $ 686,000 $ 962,000 $ 734,000 Variable costs 386,900 428,000 663,800 Contribution margin 299,100 534,000 70,200 Fixed costs 261,200 349,500 301,400 Net income (loss) 37,900 184,500 (231,200) Multiple Choice $3,200 decrease $21,000 increase $43,800 increase $7,000 increase $43,800 decrease