Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $53,000 for the past year kitchen division sales for the year were $1040,000, and its variable costs were $775,000. The fixed costs of the division were $318,000. If the kitchen division is dropped, 60% of the Exed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be Multiple Choice 574,200 decrease $265.000 increase 5274.200 decreme 574,200 Increase $265.000 decrease