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 Laptops Tablets Phones $416,000 $931,500 $754,000 $995,000 221,000 655,000 548,000 815,000 195,000 276,500 206,000 180,000 91,200 194,300 158,800 215,000 103,800 82,200 47,200 (35,000) $25,000 decrease $170,000 increase $170,000 decrease O $35,000 increase O $10,000 decrease