Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $54,000 for the past year as shown below. Segment Income (Loss)) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,070,000 797,000 273,000 327,000 $ (54,000) If the kitchen division is dropped, all $797,000 of its variable costs are avoidable, and $196,200 of its fixed costs are avoidable. The impact on Valdez's, income from eliminating this business segment would be: