Please Do not Give image format Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $85,000 as shown below.Segment Income (Loss)Sales1,110,000Variable costs975,000Contribution margin135,000220,000Fixed costsIncome (Loss)$(85,000)It the Windows division is dropped, all of its variable costs are avoidable, and $143,000 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would beMunple Choice$7.200 decrease$8.000 increase$143.000 decrease$143,000 increase$8.000 decrease

Impact on income due to elimination of division :— It is calculated by deducting income (Loss)…

Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $85,000 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin 1,110,000 975,000 135,000 220,000 $(85,000) Fixed costs Income (Loss) It the Windows division is dropped, all of its variable costs are avoidable, and $143.000 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would be Multiple Choice $7.200 decrease $8.000 increase $143.000 decrease $143.000 increase $8.000 decrease

Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $85,000 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin 1,110,000 975,000 135,000 220,000 $(85,000) Fixed costs Income (Loss) It the Windows division is dropped, all of its variable costs are avoidable, and $143.000 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would be Multiple Choice $7.200 decrease $8.000 increase $143.000 decrease $143.000 increase $8.000 decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What are some true statements regarding the use of a worksheet?
For what purpose Form 2553 is required?
Tiger Corp is a calendar year taxpayer that elected S status in its first year of operations. Tiger is owned by Harbert (600 shares with beginning AB = $12,000) and Leath (400 shares with beginning AB = $8000). The income statement for Tiger Corp is presented below. The corporation’s beginning AAA balance was -$30,000, OAA was $1,000, and Accumulated E&P from prior years as a C corp was $1,000. Sales Revenue $105,000 Municipal bond income $5,000 Cost of goods sold ($45,000) Salary expense to owners ($20,000) Employee wages ($5,000) Net STCG stock sale $2,000 Depreciation expense ($10,000) Charitable contributions ($1,000) Fines and Penalties ($2,000) Net Income $29,000 Tax depreciation is $15,000 of which $5,000 is Sec. 179 depreciation. Tiger Corp also made a $10,000 distribution. Provide a book-tax reconciliation above and distinguish between ordinary business income (loss) and separately stated items…
What information is provided by a record layout diagram?
Adjusting entries and error example
This is not in proper format
Read and interpret abalance sheet.
Briefly discuss the nature of Single entry and double entry system.
6.
Please do not give answer in image formate