b

TB MC Qu. 23-107 (Algo) Valdez Company is considering eliminating... Valdez Company is considering ellminating its kitchen division, which reported an operating loss of $60,000 for the past year as shown below, Segment Income (tous) Sales $ 1,170,000 Variable costs 872.000 Contribution margin 298,000 Fixed costs 358,000 Income (1095) $ (60,000) if the kitchen division is dropped, all $872,000 of its variable costs are avoidable, and $214,800 of its fixed costs are avoidable. The impact on Income from ellminating this business segment would be Multiple Choice $308,400 decrease $83.200 Increase $298.000 Increase