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Question 37 1 pts A company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,000. The division

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Question 37 1 pts A company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,000. The division sales for the year were $960,000 and the variable costs were $475,000. The fixed costs of the division were $527,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on the company's operating income for eliminating this business segment would be: O $485,000 decrease O $210,800 increase $274,200 decrease O $485,000 increase O $274,200 increase

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