The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation: Contribution margin 200,000
Fixed Expense 500,000
Net operating loss (300,000)

If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?

a. 50,000 increase
b. 250,000 increase
c. 250,000 decrease
d. 550,000 increase

a. 50,000 increase

Explanation:

the company will save money by discontinuing this division since currently it is losing $300,000, but if it discontinues this division, it will only lose $250,000 which means that operating income will increase by $50,000

differential analysis:

                                      option 1                     option 2                 differential

                                      continue operating  discontinue oper.  amount

contribution margin      $200,000                 $0                          ($200,000)

fixed expenses            ($500,000)                ($250,000)             $250,000

net change                   ($300,000)                ($250,000)              $50,000

employees use applications that are uniformed so that they are able to look over them more quickly because the do not want to spend a long time reading through the applications so they get all the infomation that the are looking for on the application they made so the do not have to read about unnessacary infomaton. so to make it simple it them find the person that they want to hirer faster with out wasting time.

i hope this i spelt things wrong i believe but this is why

mark me brainliest.

this website has me so much feel free to keep asking questions