The Following Information Relates to Next Year's Projected Operating Results

Multiple Choice

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:


If the Children's Division is eliminated, $170,000 of the above fixed expenses could be avoided.The annual financial advantage (disadvantage) for the company of eliminating this division should be:

A) ($300,000)
B) $30,000
C) ($30,000)
D) $300,000