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

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