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