Question: PLEASE HELP ASAP A company is considering eliminating its backpack division, which reported an operating loss for the recent year of ( $ 42,000 ).
A company is considering eliminating its backpack division, which reported an operating loss for the recent year of \\( \\$ 42,000 \\). The division sales for the year were \\( \\$ 960,000 \\) and the variable costs were \\( \\$ 475,000 \\). The fixed costs of the division were \\( \\$ 527,000 \\). If the backpack division is dropped, all of the fixed costs allocated to the division will be eliminated. The impact on the company's operating income for eliminating this business segment would be: \\( \\$ 485,000 \\) decrease \\( \\$ 42,000 \\) increase \\( \\$ 274.200 \\) decrease \\( \\$ 42,000 \\) increase \\( \\$ 274,200 \\) increase
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