Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $170,000 of the fixed costs allocated to that division could be eliminated. The impact on Valber's operating income from eliminating the phone division would be: Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops $ 416,000 221,000 195,000 91,200 103,800 Laptops $931,500 655,000 276,500 194,300 82,200 Tablets $754,000 548,000 206,000 158,800 47,200 Phones $995,000 815,000 180,000 215,000 (35,000) Multiple Choice $25,000 decrease $170,000 increase $170,000 decrease $35,000 Increase $10.000 decrease