Sammy Company is considering elminating its Commercial vision. The company locates fred costs based on...
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Sammy Company is considering elminating its Commercial vision. The company locates fred costs based on division sales. If the Commercial vision is dropped, all of its variable costs are avoidable, and $10000 of sted costs are available. The impact on Sammy's operating income from minating the commercial division would be Sale Variable coste contribution margin Fixed costs Net Income (s) Garden $ 600,000 373.900 206,100 248.200 57.900 Tarn S925.000 415.000 500,000 336.500 171,500 Commercial 695.000 650.000 4,200 25,500 (209.300)
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