The fixed costs of the division were $193,000. 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:

decrease in the operating income of $132,100

Explanation:

The computation of the impact on the operating income should be given below:

Sales $1,050,000

less: variable cost -$860,000

contribution margin $190,000

Less fixed cost (30% of $193,000) -$57,900

Impact on operating income $132,100

So there is a decrease in the operating income of $132,100

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a

answer; blank(1); autonomous; blank(2) a wlan controller-based architecture;