Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year...
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Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $47,500 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) Multiple Choice if the backpack division is dropped, all $486,000 of its variable costs are avoidable, and $217,400 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be $496,000 decrease $217,400 increase $278.600 decrease $ 982,000 486,000 $496,000 increase 496,000 543,500 $ (47,500) Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $47,500 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) Multiple Choice if the backpack division is dropped, all $486,000 of its variable costs are avoidable, and $217,400 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be $496,000 decrease $217,400 increase $278.600 decrease $ 982,000 486,000 $496,000 increase 496,000 543,500 $ (47,500)
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