Question: The manager at Sio, Inc. is considering eliminating the packaging division. Sales and variable expense are traceable directly to the division. Of the administrative

The manager at Sio, Inc. is considering eliminating the packaging division. Sales and variable expense are traceable directly to the division. Of the administrative expenses, $10,000 are traceable to the division and would be eliminated if the division were eliminated. Sales Variable expenses Contribution margin Administrative expense Packaging division income $ 90,000 54,000 36,000 40,000 $ (4,000) What would be the effect on net income if the packaging division is eliminated?

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