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3 Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $5,800 as shown below. 3 points
3 Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $5,800 as shown below. 3 points Segment Income (Loss) Sales $ 1,120,000 Variable costs 888,000 Contribution margin 232,000 Fixed costs 237,800 Income (loss) $ (5,800) eBook If the mountain bike division is dropped, all $888,000 of its variable costs are avoidable, and $71,340 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be: Multiple Choice $71,340 decrease
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