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Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $ 7 , 0 0 0 as
Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $ as shown below.
Segment Income Loss
Sales $
Variable costs
Contribution margin
Fixed costs
Income loss $
If the mountain bike division is dropped, all $ of its variable costs are avoidable, and $ of its fixed costs are avoidable. The impact on income for eliminating this business segment would be:
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