Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,600. The division sales for the year were $1,056,000 and the variable costs were $866,000. The fixed costs of the division were $199,000. 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:

$190,000 increase

$190,000 decrease

$56,100 decrease

$59,700 decrease

$130,300 decrease