Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $55,000 for the past year as shown below. Segment Income (Loss) Sales Variable costs $ 1,090,000 812,000 Contribution margin 278,000 333,000 $ (55,000) Fixed costs Income (loss) If the kitchen division is dropped, all $812,000 of its variable costs are avoidable, and $199,800 of its fixed costs are avoidable. The Impact on Valdez's Income from eliminating this business segment would be: Mutiple Choice $78,200 $278,000 in $287,400 dec $78,200 in $278,000