Help Save & Exit Valdez Company is considering eliminating its kitchen division, which reported an operating...

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Help Save & Exit Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $61,000 for the past year as shown below. Segment Income (Loss) Sales $ 1,190,000 Variable costs 887,000 Contribution margin 303,000 Fixed costs 364,000 $ (61,000) Income (loss) If the kitchen division is dropped, all $887,000 of its variable costs are avoidable, and $218,400 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be: Multiple Choice $303,000 decrease $313,800 decrease $84,600 decrease $84 600 increase Help Save & Exit Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $61,000 for the past year as shown below. Segment Income (Loss) Sales $ 1,190,000 Variable costs 887,000 Contribution margin 303,000 Fixed costs 364,000 $ (61,000) Income (loss) If the kitchen division is dropped, all $887,000 of its variable costs are avoidable, and $218,400 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be: Multiple Choice $303,000 decrease $313,800 decrease $84,600 decrease $84 600 increase

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