Magnus Division earns a contribution margin of $200,000 and has a division margin of $75,000. If Magnus Division is closed, the firm can eliminate all of the direct division expenses and $110,000 of common expenses.
How will closing the division affect the firm's operating income?

Question

Magnus Division earns a contribution margin of $200,000 and has a division margin of $75,000. If Magnus Division is closed, the firm can eliminate all of the direct division expenses and $110,000 of common expenses. 
How will closing the division affect the firm's operating income?

Quizplus · Accepted Answer

The Answer of Magnus Division earns a contribution margin of $200,000 and has a division margin of $75,000. If Magnus Division is closed, the firm can eliminate all of the direct division expenses and $110,000 of common expenses. 
How will closing the division affect the firm's operating income?

Magnus Division Earns a Contribution Margin of $200,000 and Has