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Bison Company is considering eliminating its Chicken division. The company allocates fixed costs based on division sales. If the Chicken division is dropped, $100,000 of

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Bison Company is considering eliminating its Chicken division. The company allocates fixed costs based on division sales. If the Chicken division is dropped, $100,000 of the fixed costs allocated to it could be eliminated. The impact on Bison's operating income from eliminating the Chicken division would be Sales Variable costs Contribution margin Fixed costs Net income (Loss) Fish $678,000 372,900 305, 100 247,200 57,900 Beef Chicken $920,000 $ 692,000 414,000 649,800 506,000 42,200 335,500 252,400 170,500 (210,200) Multiple Choice 510.200 decrease $15.000 increase $57800 decrease STRO

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