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Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Sales Variable costs Contribution Margin Fixed Costs (allocated)
Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Windsor Ridge $360, eee $320,000 280,000 150,000 $ 80,000 $170, eee 122,000 128,000 $(42,eee) $ 42,000 Total $680, eee $430,000 $250, eee $250,000 $ por What would the impact on operating income be if Power Inc. discontinued the Windsor Division and could save $24,000 in allocated fixed costs? Multiple Choice O Decrease of $56,000 O increase of $42.000 C) increase of $24,000
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