Question: AP&P is considering eliminating its web design division because it is not profitable. Sales is $100000, Variable Costs $40000, Contribution Margin $60000, Fixed Costs $100000,

AP&P is considering eliminating its web design division because it is not profitable. Sales is $100000, Variable Costs $40000, Contribution Margin $60000, Fixed Costs $100000, Net Income -$40000. If the division is eliminated, 30% of the fixed costs will be allocated to other divisions and 70% will be eliminated. What will be the overall impact on net income for the company if the division is eliminated.

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