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 $170,000 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 $170,000 decrease $35,000 increase $170,000 increase $10,000 decrease Desktops $ 416,000 221,000 195,000 91,200 103,800 Laptops $ 931,500 655,000 276,500 194,300 82,200 Tablets $ 754,000 548,000 Phones $ 995,000 815,000 206,000 180,000 158,800 215,000 47,200 (35,000)

Vaber Company is considering eliminating its Phone division. The company allocates fixed costs based on soles. If the Phone division is dropped, alf of Mutipis Chaice smopoo decrease $35000 ncrebse $170000 incresse $10000 dectease $170,000 decrease $35,000 increase $170.000 increase $10,000 decrease $25.000 decrease