The following information relates to next year's projected operating results of the consumer division of xampa corporation: contribution margin $1,800,000 fixed expenses 2,100,000 net operating loss ($300,000) 1. if the consumer division is eliminated, $1,600,000 of the above fixed expenses could be avoided. what will be the effect on xampa's profit next year if consumer division is eliminated?

decreased by $200,000

Explanation:

The effect on Xampa's profit next year would be

=  Reduction in Contribution margin - avoided fixed expenses

= $1,800,000 - $1,600,000

= $2,00,000

As we see that the operating profit would be decreased by $200,000 if the fixed cost is avoided for $1,600,000 and the contribution margin is decreased by $1,800,000 so the difference shows the effect

answerthe united states of america;

answermeasured by how well she or he does the job'; /