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 variable costs are avoidable, and $169,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone division is: Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops $ 413,000 220,000 193,000 90,200 102,800 Laptops $ 928,500 654,000 274,500 193,300 81,200 Tablets $ 751,000 547,000 204,000 157,800 46,200 Phones $ 994,000 814,000 180,000 214,000 (34,000)

Valber Company is considering eliminating its Phone division. The compony allocates faed costs bosed on sales. If the Phone division is diopped, all of its variable costs are avoidable, and $169.000 of lis fixed costs are dvoldable. The impact on Volber's income from eliminating the Phone division is