TB MC Qu. 23-111 Sammy Company is considering... Sammy Company is considering etminating its commercial division. The company allocates foed costs based on daon sales. If the commercial dicton is dropped, $120.000 of the fored coses allocated to it could be eliminated. The impact on Sammy's operating income from eliminating the commercial on would be Sales Variable costs Contribution sangin Fixed costs Net Incon (loss) Garden 5683,000 392,900 290, 100 267,200 22,900 Far $980,000 434,000 546,000 a55,500 190, 500 Commercial $752,000 669,800 82,200 325,40e 243,200)