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A) B) The impact on Gilly Company's operating income from eliminating this business segment would be: C) D) 20) Gilly Company is considering eliminating its
A) B) The impact on Gilly Company's operating income from eliminating this business segment would be: C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: If the School Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 of its fixed costs are avoidable. E) Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,121,000 986,000 135,000 231,000 $ (96,000) $14,350 decrease. $15,150 increase. $150,150 decrease. $150,150 increase. $15,150 decrease.
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