23 8012249 Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $5,200 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) If the mountain bike division is dropped, all $882,000 of its variable costs are avoidable, and $68,460 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be: Multiple Choice $68,460 decrease $223,000 Increase $63,260 decrease $154,540 decrease $ 1,105,000 882,000 223,000 228,200 $ (5,200) $223,000 decrease

Soar incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $5,200 as shown below. If the mountain bike division is dropped, all $882,000 of its variable costs are avoidable, and $68,460 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be: Multiple Choice $63,460 decrease $223.000 increase $63,260 decrease $154,540 decrease $223,000 decrease