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Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $6,400 as shown below. Sales Segment
Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $6,400 as shown below. Sales Segment Income (Loss) Variable costs Contribution margin Fixed costs Income (loss) $ 1,135,000 894,000 241,000 247,400 $ (6,400) If the mountain bike division is dropped, all $894,000 of its variable costs are avoidable, and $74,220 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be Multiple Choice $166.780 decrease
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