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DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 3 Sales Variable costs Contribution margin Department 1 $670,000 445,000 $225,000 Department
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 3 Sales Variable costs Contribution margin Department 1 $670,000 445,000 $225,000 Department 2 $322,000 287,000 $35,000 $856,000 602,000 $254,000 Direct fixed expenses Common fixed expenses Total fixed expenses $120,000 75,000 $195,000 $27,000 30,000 $57,000 $163,000 94,000 $257,000 Operating income (loss) $30,000 ($22.000) ($3,000) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 2 have on DJ H's total operating income
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