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 $158,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone division is: Sales Variable costs 5 Contribution margin Fixed costs Net income (loss) Desktops $ 380,000 209,000 Laptops $ 895,500 643,000 Tablets $ 718,000 536,000 Phones $ 983,000 803,000 171,000 252,500 182,000 180,000 79,200 182,300 146,800 203,000 91,800 70,200 35,200 (23,000)