Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the...
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Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $6,800 as shown below. Segment Income (Loss) Sales $ 1,145,000 Variable costs 898,000 Contribution margin 247,000 Fixed costs 253,800 Income (loss) $ (6,800) If the mountain bike division is dropped, all $898,000 of its variable costs are avoidable, and $76,140 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be
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