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 $169,000 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 $24,000 decrease $169,000 increase $169,000 decrease $34,000 increase $11,000 decrease Desktops $ 413,000 220,000 Laptops $ 928,500 654,000 Tablets $ 751,000 547,000 Phones $ 994,000 814,000 193,000 274,500 204,000 180,000 90,200 193,300 157,800 214,000 102,800 81,200 46,200 (34,000)