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Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $98,000 as shown below. Segment Income ( Loss)
Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $98,000 as shown below. Segment Income ( Loss) Sales $ 1, 123,000 Variable costs 988,060 Contribution margin 135, 000 Fixed costs 2BB, 000 Income (loss) $ (98, 060) If the Windows division is dropped, all of its variable costs are avoidable, and $151,450 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business seament would be
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