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Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $6,600 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 $6,600 as shown below. Segment Income (Loss) Sales $1,140,000 Variable costs 896,000 Contribution margin 244,000 Fixed costs 250,600 Income (loss) \$(6,600) If the mountain bike division is dropped, all $896,000 of its variable costs are avoidable, and $75,180 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be: $75,180 decrease O\$168,820 decrease $244,000 decrease $68,580 decrease $244,000 increase

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