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Sammy company is considenng euminating its commercial division, ine company anocates fixed costs based on division saisi the commercial division is dropped, $118,000 of the

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Sammy company is considenng euminating its commercial division, ine company anocates fixed costs based on division saisi the commercial division is dropped, $118,000 of the fixed costs allocated to it could be eliminated. The impact on Sammy's operating income from eliminating the commercial division would be: 39 Garden $679,000 390,900 288, 100 265, 200 22,900 Sales Variable costs Contribution margin Fixed costs Net income (loss) Farm $974,000 432,000 542,000 353,500 188,500 Commercial $ 746,000 667,800 78,200 320,400 (242,200) Ints 3 01:22:52 Multiple Choice $6,200 decrease $42.000 increase Next >

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