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 $153,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone division is: 139 Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops $ 365,000 204,000 Laptops $ 880,500 Tablets $ 703,000 Phones $ 978,000 638,000 531,000 798,000 161,000 242,500 172,000 180,000 74,200 177,300 141,800 198,000 86,800 65,200 30,200 (18,000