Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $54,000 for the past year. Kitchen division sales for the year were $1,050,000, and its variable costs were $776,000. The fixed costs of the division were $320,000. If the kitchen division is dropped, 61% 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 $78.800 decrease $266,000 increase $286,160 decrease $78,800 Increase $266,000 decrease Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $2.20 and total fixed costs are $10,000. The hamster food can be sold as it is for $9.45 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,400 cost. The additional processing will yield 10,000 bags of Premium Green and 3,400 bags of Green Deluxe, which can be sold for $8.45 and $6.45 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be: Multiple Choice $106.430 O $104,030 O $1.930 $9.530. O $2,400