Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $57,000 for the past year. Kitchen division sales for the year were $1,080,000, and its variable costs were $779,000. The fixed costs of the division were $323,000. If the kitchen division is dropped, 64% 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 $94,280 decrease $94.20 Increase 5266,000 increase $326,840 decrease $266.000 decrease