Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $85,000. Division sales for the year were $1,310,000 and its variable costs were $1,175,000. The fixed costs of the division were $220,000. If the kitchen division is dropped, 45% of the fixed costs allocated it could be eliminated. The impact on Carns’s operating income from eliminating the small tools division would be:

$36,000

Explanation:

As per the data given in the question,

Current Loss = $85,000

If we don't consider division, then 45% of fixed cost cab be eliminated and remaining 55% of fixed cost is considered.

Fixed cost to be applied

= $220,000 × 55%

= $121,000

Enhancing in operating loss when division is eliminated

= $121,000 - $85,000

= $36,000

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

answer$225.00;