Granfield Company is considering eliminating its backpack division, which reported a loss for the recent...
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Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $44,000 as. shown below. If the backpack division is dropped, all $479,000 of its variable costs are avoidable, and $213,200 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be: Multiple Choice $489,000 decrease $213,200 increase $275,800 decrease $489,000 increase $275,800 increase
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