The Dropinsky Company's management wants to determine if Division Y should be eliminated. The following data are available (in thousands).

Segmented Income Statement
	Division X	Division Y	Division Z	Total
Sales	$200	$300	$400	$900
Less variable costs	80	150	160	390
Contribution margin	$120	$150	$240	$510
Less direct fixed costs	70	170	120	360
Segment margin	$ 50	($ 20)	$120	$150
Less common fixed costs				90
Operating income				$ 60

a. Assuming all direct fixed costs of Division Y are avoidable, what would be the change in operating income if Division Y were eliminated?

b. Assuming one-half of the direct fixed costs of Division Y are avoidable, what would be the change in operating income if Division Y were eliminated?