Bryson Company's Western Territory's Forecasted Income Statement for the Upcoming

Bryson Company's western territory's forecasted income statement for the upcoming year is as follows:
$\begin{array}{|l|r|}\hline\text { Sales revenue } & \$ 800,000 \\\hline \text { Variable costs } & \underline{500,000} \\\hline \text { Contribution margin } & \$ 300,000 \\\hline \text { Fixed costs } & \underline{496,000} \\\hline \text { Operating income (loss) } & \$(196,000) \\\hline\end{array}$ Bryson Company's management is considering dropping the western territory.If the company eliminates $196,000 of fixed costs by dropping the segment,the segment should be dropped.