Guld's Glass, Inc. has three divisions: Commercial Nonprofit, and Residential. The segmented income statement for last year revealed the following Sales Variable Costs Contribution Margin Fixed Costs Net Income Commercial 290,000 147,000 143,000 124,000 19,000 Nonprofit 533,000 435,000 98,000 106,000 (8000) Residential 837,000 472,000 365,000 139,000 226,000 Total 1,660,000 1,054,000 606,000 369,000 237,000 The manager decided to eliminate the, Nonprofit division because of his recurring losses during the previous years, do you agree with the manager's decision? and why? If you know that fixed costs will be eliminating except $6,000 of fixed costs are allocated 50% to Commercial and 50% to Residential Hint: Prepare income statement after eliminating Nonprofit division Answer Commercial Residential Total Sales Variable Costs Contribution Margin Fixed Costs Net Income