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Business, 25.07.2020 03:01 jacobballew2019

Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $111,000. Division sales for the year were $1,170,000 and its variable costs were $1,035,000. The fixed costs of the division were $245,000. If the windows division is dropped, 60% of the fixed costs allocated to it could be eliminated. The impact on Gion’s operating income from eliminating this business segment would be:

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