Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for...

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Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for the past year as shown below. Sales Segment Income (Loss) $ 1,180,000 #79,000 Variable costs 45 Contribution margin Fixed costs Income (loss) 301,000 361,000 $ (60,000) If the kitchen division is dropped, all $879,000 of its variable costs are avoidable, and $216,600 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be Muple Choice $84,400 decrease $301000 $310,800 decrease Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for the past year as shown below. Sales Segment Income (Loss) $ 1,180,000 #79,000 Variable costs 45 Contribution margin Fixed costs Income (loss) 301,000 361,000 $ (60,000) If the kitchen division is dropped, all $879,000 of its variable costs are avoidable, and $216,600 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be Muple Choice $84,400 decrease $301000 $310,800 decrease