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12 November, 04:07

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:

a. $74,200 decrease

b. $36,000 decrease

c. $220,000 decrease

d. $36,000 increase

e. $99.000 decrease

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  1. 12 November, 05:49
    0
    I really don't know this question but aight I'm just in 6 th grade
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