B) C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: The impact on Gilly Company's operating income from eliminating this business segment would be: A) E) Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) If the School Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 of its fixed costs are avoidable. $ 1,121,000 986,000 135,000 231,000 $ (96,000) $14,350 decrease. $15,150 increase. $150,150 decrease. $150,150 increase. $15,150 decrease.
B) C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: The impact on Gilly Company's operating income from eliminating this business segment would be: A) E) Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) If the School Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 of its fixed costs are avoidable. $ 1,121,000 986,000 135,000 231,000 $ (96,000) $14,350 decrease. $15,150 increase. $150,150 decrease. $150,150 increase. $15,150 decrease.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:A) B) The impact on Gilly Company's operating income from eliminating this business segment would be: C) D) 20) Gilly Company is
considering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: If the School
Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 of its fixed costs are avoidable. E) Segment Income
(Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,121,000 986,000 135,000 231,000 $ (96,000) $14,350
decrease. $15,150 increase. $150,150 decrease. $150,150 increase. $15,150 decrease.
A)
B)
C)
D)
20) Gilly Company is considering eliminating its School Supplies Division, which reported a loss
for the prior year of $96,000, as shown below:
E)
Segment Income (Loss)
Sales
Variable costs
Contribution margin
Fixed costs
Income (loss)
The impact on Gilly Company's operating income from eliminating this business segment would
be:
If the School Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 of
its fixed costs are avoidable.
$1,121,000
986,000
135,000
$14,350 decrease.
$15,150 increase.
$150,150 decrease.
231,000
$ (96,000)
$150,150 increase.
$15,150 decrease.
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