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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)

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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 577.100 of its fixed costs to avoidable. The impact on Income for eliminating this business segment would be Multiple Choice $70100 decrease $250,000 increase $250.000 decrease Multiple Choice $70,100 decrease $250,000 increase O $250,000 decrease $172,900 decrease O $77,100 decrease

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