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The most recent income statement for the Tallahassee Branch of Bank of America is presented below: Sales $57,000 Variable costs 31,500 Contribution margin 25,500 Avoidable
The most recent income statement for the Tallahassee Branch of Bank of America is presented below:
Sales $57,000
Variable costs 31,500
Contribution margin 25,500
Avoidable fixed costs 16,500
Unavoidable fixed costs 20,000
Operating loss $(11,000)
Bank of America is thinking about eliminating the Tallahassee Branch. If the branch is eliminated, what will happen to Bank of America's operating income?
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