Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $2,500. The division sales for the year were $1,045,000 and the variable costs were $855,000. The fixed costs of the division were $188,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:

a) $56,400 decrease

b) $133,600 decrease

c) $53,900 decrease

d) $190,000 increase

e) $190,000 decrease