Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $57,000 for the past year as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,120,000 835,000 285,000 342,000 $ (57,000) Chec If the kitchen division is dropped, all $835,000 of its variable costs are avoidable, and $205,200 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be:

Valdez Company is considering eliminoting its kitchen division. which reported an operating loss of $57,000 for the past year as shown below. If the kitchen division is dropped, all $835,000 of its variable costs are avoldable, and $205,200 of its fored costs are avoidable. The impact on Valder's incom from eliminating this business segment would be