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TB MC Qu. 23-111 Sammy Company is considering... 9 Sammy Company is considering eliminating its...

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Accounting

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TB MC Qu. 23-111 Sammy Company is considering... 9 Sammy Company is considering eliminating its commercial division. The company allocates fixed costs based on division sales. If the commercial division is dropped, $119,000 of the fixed costs allocated to it could be eliminated. The impact on Sammy's operating income from eliminating the commercial division would be: 5 points Sales Variable costs Contribution margin Fixed costs Net income (loss) Garden $681,000 391,900 289, 100 266,200 Farm $977,000 433,000 544, eee 354,500 189,500 Commercial $ 749,000 668,800 80,200 321,400 (241,200) eBook 22,900 Print References Multiple Choice $3,200 decrease O O $36,000 Increase $38,800 Increase O $12,000 Increase $38.800 decrease

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