Business, 30.06.2019 02:40 josierednour285

Granfield company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,400. the division sales for the year were $948,600 and the variable costs were $469,000. the fixed costs of the division were $521,000. 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: $271,200 increase $479,600 decrease $208,400 increase $271,200 decrease $479,600 increase

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