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 $165,000 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 $20,000 decrease $165,000 increase $165,000 decrease $30,000 increase Desktops $ 401,000 216,000 185,000 Laptops Tablets $ 916,500 $ 739,000 Phones $990,000 650,000 543,000 810,000 266,500 196,000 180,000 86,200 189,300 153,800 210,000 98,800 77,200 42,200 (30,000)