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Cams Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $205,000 as shown below Sales Segment
Cams Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $205,000 as shown below Sales Segment Income (Loss) Variable costs Contribution margin Fixed costs Income (loss) $ 1,430,000 1,295,000 135,000 340,000 5 (205,000) If the Small Tools Division is dropped, all of its varable costs are avoidable, and $10,000 of its fixed costs are avoidable. The impact on Cass income from eliminating the Small Tools Ovision would be
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