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 Sammy's operating income from eliminating the commercial division would be: Sales Variable costs Contribution margin Fixed costs Net income (loss) Garden $684,000 375,900 308,100 250,200 57,900 Farm $929,000 417,000 512,000 338,500 173,500 Commercial $ 701,000 652,800 48,200 255,500 (207, 300) 48 Multiple Choice $54,800 increase $27.000 increase