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Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $100,000 as shown below. Sales Segment Income
Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $100,000 as shown below. Sales Segment Income (Loss) Variable costs Fixed costs Contribution margin Income (loss) $ 1,125,000 990,000 135,000 235,000 $ (100,000) If the Windows division is dropped, all of its variable costs are avoidable, and $152,750 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would be: Multiple Choice $16,950 decrease $17,750 increase $152,750 decrease $152,750 increase
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