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Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on...

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Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, $150,000 of its fixed costs are avoidable. If it eliminates its Phone division, Valbers total income will be:

Desktops Laptops Tablets Phones
Sales $ 356,000 $ 871,500 $ 694,000 $ 975,000
Variable costs 201,000 635,000 528,000 795,000
Contribution margin 155,000 236,500 166,000 180,000
Fixed costs 71,200 174,300 138,800 195,000
Net income (loss) 83,800 62,200 27,200 (15,000)

a. $158,200

b. $30,000

c. $128,200

d. $188,200

e. $407,500

Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, $150,000 of its fixed costs are avoidable. If it eliminates its Phone division, Valber's total income will be

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