Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $63,000 for the past year as shown below. Segment Income (Loss) Sales Variable costs $ 1,240,000 924,000 Contribution margin 316,000 379,000 $ (63,000) Fixed costs Income (loss) If the kitchen division is dropped, all $924,000 of its variable costs are avoidable, and $227,400 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be: Multiple Choice $88,600 decrease $316,000 increase $327,000 decrease SRR 600 increase