Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $42,000

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answerhappygod
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Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $42,000

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Granfield Company is considering eliminating its backpack
division, which reported a loss for the recent year of $42,000 as
shown below.
If the backpack division is dropped, all $475,000 of its variable
costs are avoidable, and $210,800 of its fixed costs are avoidable.
The impact on Granfield’s income from eliminating this business
segment would be:
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