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Business, 02.07.2021 01:50 Carloslogrono10

Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,500. The division sales for the year were $950,500 and the variable costs were $470,000. The fixed costs of the division were $522,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:

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