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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 $7,000 as shown below.
Segment Income (Loss)
Sales $ 1,150,000
Variable costs 900,000
Contribution margin 250,000
Fixed costs 257,000
Income (loss) $ (7,000)
If the mountain bike division is dropped, all $900,000 of its variable costs are avoidable, and $77,100 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be:

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