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Valder Company is considering eliminating its kitchen division, which reported an operating loss of $62,000 for the past year as shown below Segment Incone (LOS)
Valder Company is considering eliminating its kitchen division, which reported an operating loss of $62,000 for the past year as shown below Segment Incone (LOS) Sales $1,210,000 Variable costs 982,000 Contribution margin 308,000 Fived costs 370,000 Income (loss) $ (62,000) If the kitchen division is dropped, all $902.000 of its variable costs are avoidable, and $222.000 of its fixed costs are avoidable. The impact on Valdez's income from eliminating the business segment would be Multiple Choice $36.000 decrease 5308 000 crease $319.200 decrease 536 000 increase
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