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Sammy Company is considering eliminating its commercial dition. The company allocates fixed costs based on division sale. If the cartiercial don's dropped. $100,000 of the
Sammy Company is considering eliminating its commercial dition. The company allocates fixed costs based on division sale. If the cartiercial don's dropped. $100,000 of the fixed costs allocated to it could be eliminated. The impact on Sammy's operating income from eliminating the commercial vision would be Sales Variable costs Contribution margin Fixed costs Net income (loss) Garden $678,000 372,900 305, 100 247,200 57,900 Fare Comercial $920,800 $ 692,000 414,000 649,800 586,000 42,200 335,500 252,400 178,500 (210,200) Multiple Choice $15.000 557000
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