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 $$170,000$ of its fixed costs are avoidable. The impact on Valber's income

from eliminating the Phone division is:

Multiple Choice

$$25,000$ decrease

$$10,000$ decrease

$$170,000$ decrese

$$35,000$ increase

$$170,000$ increase