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Company X is evaluating whether or not to discontinue a division. The division has sales of $300,000 per year and variable expenses of $190,000 per
Company X is evaluating whether or not to discontinue a division. The division has sales of $300,000 per year and variable expenses of $190,000 per year. Of the $200,000 of fixed expenses allocated to the division each year, the company estimates that $120,000 of them will continue after the division is dropped. Based on this information, how will discontinuing the division affect the company's income? Income would change by [enter your answer as positive if income would increase, negative if it would decrease.]
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