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Valber Company is considering eliminating its phone division. The company allocates foved costs based on sales. If the phone civision is dropped, $150,000 of the

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Valber Company is considering eliminating its phone division. The company allocates foved costs based on sales. If the phone civision is dropped, $150,000 of the fixed costs allocated to that division could be eliminated. The impact on Volber's operating income from eliminating the phone division would be Sales Variable costs Contribution margin Fixed costo Net Income (los) Desktops Laptop $356,000 $871.500 201,000 635,000 155,000 236,500 71,200 174,300 B3,800 62,200 Tableta Phones $694,000 $975,000 528,000 795,000 166,000 180,000 138,000 195,000 27,200 (15,000) Multiple Choice $30,000 Increase $150,000 increase $150,000 decrease $15,000 increase $30,000 decrease

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