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Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $4,400 as shown below. Sales Segment Income
Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $4,400 as shown below. Sales Segment Income (Loss) Variable costs Contribution margin Fixed costs Income (loss) $ 1,085,000 874,000 211,000 215,400 $ (4,400) If the mountain bike division is dropped, all $874,000 of its variable costs are avoidable, and $64,620 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be
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