=+2 What would be the effect on Southern Divisions operating profit if it were to sell 4000
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=+2 What would be the effect on Southern Division’s operating profit if it were to sell 4000 more tables? Assume that to do so the division would have to acquire additional equipment costing $42000 with a one-year useful life and zero terminal disposal value. Assume further that the fixed marketing and distribution costs would not change but that the number of shipments would double. Show your calculations.
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Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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