Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $65,000 for the past year. Kitchen division sales for the year were $1,160,000, and its variable costs were $787,000. The fixed costs of the division were $334,000. If the kitchen division is dropped, 72% of the fixed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be: Multiple Choice $132,520 decrease $269,000 increase $430,160 decrease $132,520 increase $269,000 decrease