Question: Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,400. The division sales for the year

Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,400. The division sales for the year were $967,600 and the variable costs were $479,000. The fixed costs of the division were $531,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Assume a planet with a one-layer atmosphere has a solar constant S = 2,000 W/m 2 and an albedo = 0:4. (a) What is the planets surface temperature? Make the standard assumption that the atmosphere is...

1. Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,300. The division sales for the year were $965,700 and the variable...

a. Walters manufactures a specialty food product that can currently be sold for $21.80 per unit and has 19,800 units on hand. Alternatively, it can be further processed at a cost of $11,800 and...

thanks Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42.400. The division sales for the year were 5967.600 and the...

If a company reports profit margin of 29.2% and investment turnover of 1.50 for one of its investment centers, the return on investment must be: 23 Multiple Choice 10 points O & 03:41:14 5.14% O...

QUESTION 23 Factor Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total product cost per unit 40 $ 72 An outside supplier offers to provide Factor...

QUESTION 4 Epsilon Co. can produce a unit of product for the following costs Direct material $ 9.00 Direct labor 25,00 Overhead 45 00 Total product costs per unit $ 79 00 An outside supplier offers...

year Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,800. The division sales for the year were $975,200 and the...

Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,100. The division sales for the year were $961,900 and the variable...

Remaining Time: 48 minutes, 39 seconds. Question Completion Status: QUESTION 7 Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year...

Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,200. The division sales for the year were $944,800 and the variable...

How do you establish proof of ownership and value of assets? What are the key pieces of information that should be included? Why is this important?

Use both the p-value and the classical approaches to hypothesis testing to reach a decision for each of the following situations. Use a = 0.05 d. Compare the results of the two techniques for each...

You invest $6,678 today and it will generate $9,520 in a year. You would have an extra idle fund of $2,149 after the investment. The average market rate of return is 11.28%. What is the net present...

is a pricing method using price as a means of matching demand with capacity. Group of answer choices Revenue management Capacity management Demand management Differentiation management

Identifies suitable people for tasks by taking time to assess their capabilities and potential.

Prioritizes and monitors own work schedules and that of team members, managing issues before they reach a critical stage.

Challenges established working practices and takes advantage of opportunities to improve council effectiveness and efficiency. Strategic planning and resourcing Is able to plan and to prioritize...