Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for the past year, Kitchen division sales for the year were $1,110,000, and its variable costs were $782,000. The fixed costs of the division were $326,000. If the kitchen division is dropped, 67% 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 O $109,580 decrease O $266,000 increase O $367,520 decrease O $109,580 increase $266.000 decrease