Contribution margin Fixed costs Income (loss) 190,000 193,000 $ (3,000) the mountain bike division is dropped, all $860,000 of its variable costs are avoidable, and $57,900 of its fixed costs are avoidable. The impact c come for eliminating this business segment would be: Multiple Choice $190,000 increase $132,100 decrease $54,900 decrease $190,000 decrease $57,900 decrease Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $3,000 as shown below. Sales Segment Income (Loss) $ 1,050,000 860,000 Variable costs. Contribution margin Fixed costs Income (loss) 190,000 193,000 $ (3,000) If the mountain bike division is dropped, all $860,000 of its variable costs are avoidable, and $57,900 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be:
Contribution margin Fixed costs Income (loss) 190,000 193,000 $ (3,000) the mountain bike division is dropped, all $860,000 of its variable costs are avoidable, and $57,900 of its fixed costs are avoidable. The impact c come for eliminating this business segment would be: Multiple Choice $190,000 increase $132,100 decrease $54,900 decrease $190,000 decrease $57,900 decrease Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $3,000 as shown below. Sales Segment Income (Loss) $ 1,050,000 860,000 Variable costs. Contribution margin Fixed costs Income (loss) 190,000 193,000 $ (3,000) If the mountain bike division is dropped, all $860,000 of its variable costs are avoidable, and $57,900 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Contribution margin
Fixed costs
Income (loss)
190,000
193,000
$ (3,000)
the mountain bike division is dropped, all $860,000 of its variable costs are avoidable, and $57,900 of its fixed costs are avoidable. The impact c
come for eliminating this business segment would be:
Multiple Choice
$190,000 increase
$132,100 decrease
$54,900 decrease
$190,000 decrease
$57,900 decrease
Transcribed Image Text:Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $3,000 as shown below.
Sales
Segment Income (Loss)
$ 1,050,000
860,000
Variable costs.
Contribution margin
Fixed costs
Income (loss)
190,000
193,000
$ (3,000)
If the mountain bike division is dropped, all $860,000 of its variable costs are avoidable, and $57,900 of its fixed costs are avoidable. The impact on
income for eliminating this business segment would be:
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