A) B) The impact on Gilly Company's operating income from eliminating this business segment would be: C) D) 20) Gilly Company isconsidering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: If the SchoolSupplies Division is dropped, all of its variable costs are avoidable, and $150,150 of its fixed costs are avoidable. E) Segment Income(Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,121,000 986,000 135,000 231,000 $ (96,000) $14,350decrease. $15,150 increase. $150,150 decrease. $150,150 increase. $15,150 decrease.A)B)C)D)20) Gilly Company is considering eliminating its School Supplies Division, which reported a lossfor the prior year of $96,000, as shown below:E)Segment Income (Loss)SalesVariable costsContribution marginFixed costsIncome (loss)The impact on Gilly Company's operating income from eliminating this business segment wouldbe:If the School Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 ofits fixed costs are avoidable.$1,121,000986,000135,000$14,350 decrease.$15,150 increase.$150,150 decrease.231,000$ (96,000)$150,150 increase.$15,150 decrease.

Operating income or loss is the amount of money earned or loss incurred by the entity from its daily…

Answered: B) C) D) 20) Gilly Company is…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 24P

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