Question 1

Question 1 Not yet answered A business is thinking of closing Division Y The Contribution Margin of Division Y is 300. Fixed Costs associated with Division Y are 600 Marked out of 1.00 p Flag Of the Fixed Costs, 90% are avoidable if Division Y is closed The remainder of fixed costs will be incurred regardless of whether Division Y closes. question What is the impact of closing Division Y? Select one: O a. None of these answers o b. Net Income increases by 500 c. Net Income increases by 240 O d. Net Income decreases by 140 e. Net Income increases by 150