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 $155,000 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) Multiple Choice $10,000 decrease Desktops $ 371,000 206,000 Laptops $ 886,500 640,000 Tablets $ 709,000 Phones $980,000 533,000 800,000 165,000 246,500 176,000 180,000 76,200 179,300 143,800 200,000 88,800 67,200 32,200 (20,000)