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11.6 Eliminate an Unprofitable Segment or Product A division of Harper Ltd. has the following financial information: Sales - $300,000; Variable costs - 60% of
11.6 Eliminate an Unprofitable Segment or Product A division of Harper Ltd. has the following financial information: Sales - $300,000; Variable costs - 60% of sales; Fixed costs $180,000. If 40% of the fixed costs can be eliminated what will be the impact on Harper's operating if the division is closed? Increase of $48,000 Increase of $108,000 Decrease of $108,000 Decrease of $48,000 11.6 Eliminate an Unprofitable Segment or Product A division of Harper Ltd. has the following financial information: Sales - $300,000; Variable costs - 60% of sales; Fixed costs $180,000. If 40% of the fixed costs can be eliminated what will be the impact on Harper's operating if the division is closed? Increase of $48,000 Increase of $108,000 Decrease of $108,000 Decrease of $48,000
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