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hold Sell Son Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $5,000 The division sales
hold Sell Son Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $5,000 The division sales for the year were $1052,000 and the variable costs were $862000. The fixed costs of the division were $195,000. If the mountain bke division is dropped, 30% of the feed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $1,500 decrease $190.000 increase $53,500 decrease $58.500 decrease $190.000 decrease
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