Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,700. The division sales for the year were $973,300 and the variable costs were $482,000. The fixed costs of the division were $534,000. 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:
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,700. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,700. The division sales for the year were $973,300 and the variable costs were $482,000.