Guld's Glass, Inc., has three divisions: Commercial, Nonprofit, and Residential. The segmented income statement for last year revealed the following:

1. How will Guld's Glass, Inc., be affected if the Nonprofit Division is dropped?
2. Assume the elimination of the Nonprofit Division causes the sales of the Residential Division to decrease by 10 percent. How will Guld's Glass, Inc., be affected if the Nonprofit Division isdropped?

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Guld's Glass, Inc. Divisional Profit Summary and Decision Analysis Commercial Nonprofit Residential Total Sales Less variable costs Contribution margin Less direct fixed costs Segment margin Less common fixed costs Operating income Division Divsion Dision Company $290,000 S533,000 $837,000 $1,660,000 1054.000 $143,000 98,000 365,000 606,000 369,000 s 19.000 S 8,000 226,00 237,000 168,000 69,000 147 1735,000472000 435,000 472,00d 124,000 106,000 139,000