6 Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,900 The division sales for the year were $977100 and the variable costs were $484,000 The fixed costs of the division were $536,000 If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be 01 24 54