TB MC Qu. 10-108 (Algo) Valber Company is considering eliminating... Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its varlable costs are avoidable, and $164,000 of its fixed costs are avoidable. The impact on Valbers income from eliminating the Phone division is: Multiple Choice $19.000 decrease $164,000 increase $164,000 decrease $29,000 increase $16,000 decrease Lattmer Company had the following results of operations for the past year: A foreign company offers to buy 5,100 units at $7.50 per unit in addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 25,300 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $2050 ioss $8,425 loss $3,825 profit. $3,325 ioss