Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $5,600 as shown below.

Segment Income (Loss)
Sales	$ 1,115,000
Variable costs	886,000
Contribution margin	229,000
Fixed costs	234,600
Income (loss)	$ (5,600)

If the mountain bike division is dropped, all $886,000 of its variable costs are avoidable, and $70,380 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be:

• $64,780 decrease

• $158,620 decrease

• $229,000 increase

• $229,000 decrease

• $70,380 decrease