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Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $69,000 for the past year. Kitchen division sales for the year

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Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $69,000 for the past year. Kitchen division sales for the year were $1,200,000, and its variable costs were $791,000. The fixed costs of the division were $332,000. If the kitchen division is dropped, 76% 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 $494,840 decrease $263,000 decrease o $156,680 increase o $263,000 increase o o $156,680 decrease

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