Soar Incorporated Is Considering Eliminating Its Mountain Bike Division,which Reported

question 96

Multiple Choice

Soar Incorporated is considering eliminating its mountain bike division,which reported an operating loss for the recent year of $3,000.The division sales for the year were $1,050,000 and the variable costs were $860,000.The fixed costs of the division were $193,000.If the mountain bike division is dropped,30% of the fixed costs allocated to that division could be eliminated.The impact on operating income for eliminating this business segment would be:

• A)$57,900 decrease
• B)$132,100 decrease
• C)$54,900 decrease
• D)$190,000 increase
• E)$190,000 decrease

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Definitions:

Skeletal Muscles

The muscles attached to bones that are responsible for voluntary movements of the body.

GABA

Gamma-Aminobutyric Acid, an inhibitory neurotransmitter in the brain that helps regulate nerve cell activity.

Hebbian Learning Rule

A principle describing how neurons might adapt during learning, suggesting that when a neuron frequently assists in firing another, the connection between them strengthens.

Axon

The long, slender projection of a nerve cell that transmits electrical impulses away from the neuron's body.