22 01:23:34 Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are avoidable, and $108,000 of its fixed costs are avoidable. The impact on Sammy's operating income from eliminating the commercial division would be: Sales Variable costs Contribution margin Fixed costs Net income (loss) Multiple Choice $49,800 increase $49,800 decrease $9,000 increase $6,200 decrease $27,000 increase Garden Farm $ 684,000 $ 944,000 380,900 422,000 303,100 255,200 47,900 522,000 343,500 178,500 Commercial $ 716,000 657,800 58,200 280,400 (222,200)

Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are avoidable, and $108,000 of its fixed costs are avoldable, The impact on Sammy's operating income from eliminating the commercial division would be: Multiple Choice $49,800 increase $49,800 decrease $9.000 increase $6,200 decrease $27,000 increase