The Gap, Inc., commonly known as Gap Inc. or Gap, is an American worldwide clothing and...

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The Gap, Inc., commonly known as Gap Inc. or Gap, is an American worldwide clothing and accessories retailer. Gap has a division that produces children's clothing. Next year it is projected that the Children's Division will show the following operating results: Contribution margin Fixed expenses Net operating loss $ 200,000 500,000 $(300,000) If the Children's Division is eliminated, $170,000 of the above fixed expenses could be avoided. The annual financial advantage (disadvantage) for the company of eliminating this division should be: The Gap, Inc., commonly known as Gap Inc. or Gap, is an American worldwide clothing and accessories retailer. Gap has a division that produces children's clothing. Next year it is projected that the Children's Division will show the following operating results: Contribution margin Fixed expenses Net operating loss $ 200,000 500,000 $(300,000) If the Children's Division is eliminated, $170,000 of the above fixed expenses could be avoided. The annual financial advantage (disadvantage) for the company of eliminating this division should be: