Vanikord Corporation currently has two divisions which had the following operating results for last year:

	Cork Division	Rubber Division
Sales	$504,000	$392,000
Variable costs	211,200	300,800
Contribution margin	292,800	91,200
Traceable fixed costs	138,000	62,000
Segment margin	154,800	29,200
Allocated common corporate fixed costs	92,000	54,000
Net operating income (loss)	$62,800	($24,800)

Because the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year?

$24,800 higher

$38,000 higher

$38,000 lower

$29,200 lower