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 $157,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone division is: Laptops Sales Variable costs Desktops $377,000 Tablets Phones $ 892,500 $ 715,000 $ 982,000 208,000 642,000 535,000 802,000 Contribution margin. Fixed costs 169,000 250,500 180,000 180,000 78,200 181,300 145,800 202,000 Net income (loss) 90,800 69,200 34,200 (22,000)