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What the impact on gion operating income

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Reference no: EM133161915

Question - Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $98,000 as shown below.

Segment Income (Loss)

Sales $1,123,000

Variable costs 988,000

Contribution margin 135,000

Fixed costs 233,000

Income (loss) $(98,000)

If the Windows division is dropped, all of its variable costs are avoidable, and $151,450 of its fixed costs are avoidable. What the impact on Gion's operating income from eliminating this business seament?

Reference no: EM133161915

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