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please help me solve ASAP. I'll give thumbs up. Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent
please help me solve ASAP. I'll give thumbs up.
Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $6,800 as shown below. \begin{tabular}{lr} \multicolumn{1}{l}{ Segment Income (Loss) } \\ Sales & $1,145,000 \\ Variable costs & 898,000 \\ \cline { 2 - 2 } Contribution margin & 247,000 \\ Fixed costs & 253,800 \\ Income (loss) & $(6,800) \\ \hline \end{tabular} If the mountain bike division is dropped, all $898,000 of its variable costs are avoidable, and $76.140 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be: Multiple Choice $247.000 increase $69.340 decrease $247,000 decrease $76,140 decrease \$170,860 decrease
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