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18 Gaston Industries is considering eliminating its Landscaping department. The company allocates fixed costs based on department sales. If the Landscaping department is dropped, all
18
Gaston Industries is considering eliminating its Landscaping department. The company allocates fixed costs based on department sales. If the Landscaping department is dropped, all of its variable costs are avoidable, and $116,000 of its fixed costs are avoidable. The impact on Gaston's operating income from eliminating the Landscaping department would be: A. $41,800 decrease B. $41,800 increase C. $5,200 decrease D. $54,000 increase E. $18,000 increase Step by Step Solution
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