Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, $150,000 of its fixed costs are avoidable. If it eliminates its Phone division, Valbers total income will be:

	Desktops	Laptops	Tablets	Phones
Sales	$ 356,000	$ 871,500	$ 694,000	$ 975,000
Variable costs	201,000	635,000	528,000	795,000
Contribution margin	155,000	236,500	166,000	180,000
Fixed costs	71,200	174,300	138,800	195,000
Net income (loss)	83,800	62,200	27,200	(15,000)

a. $158,200

b. $30,000

c. $128,200

d. $188,200

e. $407,500

Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, $150,000 of its fixed costs are avoidable. If it eliminates its Phone division, Valber's total income will be