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Business, 28.08.2019 01:00 Nobleufia

Soar incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $4,000. the division sales for the year were $1,058,000 and the variable costs were $861,000. the fixed costs of the division were $201,000. if the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. the impact on operating income for eliminating this business segment would be:

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