Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent
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Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,200. The division sales for the year were $1,052,000 and the variable costs were $862,000. The fixed costs of the division were $195,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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