Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $$245,000$ as shown below.

Segment Income $($Loss$)$

Sales $ $1,470,000$

Variable costs $1,335,000$

Contribution margin $135,000$

Fixed costs $380,000$

Income $($loss$)$ $ $(245,000)$

If the Small Tools Division is dropped, all of its variable costs are avoidable, and $$114,000$ of its fixed costs are avoidable. The impact on Carns$$s income from eliminating the Small Tools Division would be:

a$.$

$$45,800$ decrease

b$.$

$$21,000$ decrease

c$.$

$$380,000$ decrease

d$.$

$$21,000$ increase

e$.$

$$114,000$ decrease