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

	Cork Division	Rubber Division
Sales	$502,800	$394,400
Variable costs	210,840	300,560
Contribution margin	291,960	93,840
Traceable fixed costs	135,600	64,400
Segment margin	156,360	29,440
Allocated common corporate fixed costs	91,400	52,800
Net operating income (loss)	$64,960	($23,360)

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?

Multiple Choice

$23,360 higher

$41,600 higher

$41,600 lower

$29,440 lower