Business, 26.07.2019 02:40 rsimmons696

Granfield 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, 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: multiple choice$485,000 increase$485,000 decrease$274,200 decrease$210,800 increase$274,200 increase

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