Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $158,000 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 209,000 Contribution margin 171,000 Fixed costs Net income (loss) 79,200 91,800 Desktops Laptops Tablets $380,000 $895,500 $718,000 $983,000 643,000 536,000 803,000 252,500 182,000 180,000 182,300 146,800 203,000 70,200 35,200 (23,000) Phones Multiple Choice $158,000 Increase $23,000 Increase $22,000 decrease $13,000 decrease $158,000 decrease