Sammy Company is considering eliminating its commercial division. The company allocates fixed costs based on division sales. If the commercial division is dropped, $103,000 of the fixed costs allocated to it could be eliminated. The impact on Sammys operating income from eliminating the commercial division would be:

	Garden				Farm				Commercial
Sales	$	684,000			$	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	)