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thanks Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42.400. The division sales for the

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Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42.400. The division sales for the year were 5967.600 and the variable costs were $479,000. The fixed costs of the division were $531.000. If the backpack division is dropped, 40% of the food costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be: $212 400 increase $453.600 Increase 5453.600 decrease $276.200 Increase $276,200 decrease

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