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$116,000 of its fixed costs are avoidable. The impact on Sammy's operating income from eliminating the commercial division would be: begin{tabular}{lrrr} & Garden & Farm
$116,000 of its fixed costs are avoidable. The impact on Sammy's operating income from eliminating the commercial division would be: \begin{tabular}{lrrr} & Garden & Farm & Commercial \\ Sales & $675,000 & $968,000 & $740,000 \\ Variable costs & 388,900 & 430,000 & 665,800 \\ \hline Contribution margin & 286,100 & 538,000 & 74,200 \\ Fixed costs & 263,200 & 351,500 & 311,400 \\ \hline Net income (loss) & 22,900 & 186,500 & (237,200) \\ \cline { 2 - 5 } \end{tabular}
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