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Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $103,000 as shown below. Segment Income (Loss) Sales
Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $103,000 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,128,000 993,000 135,000 238,000 $ (103,000) If the Windows division is dropped, all of its variable costs are avoidable, and $154,700 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would be:
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