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4 A divislon of a large company reports the Information shown below for a recent year. Varlable costs and direct fixed costs are avoldable, and
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A divislon of a large company reports the Information shown below for a recent year. Varlable costs and direct fixed costs are avoldable, and 50% of the Indirect fixed costs are avoldable. Based on this Information, should the divislon be ellminated? Sales 250,eee 158,eee Variable costs Fixed costs Direct 32,00e Indirect 51.000 (9,eee) Operating loss 1-a. Compare the amounts of total revenues and total avoldable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by 1-b. Based on this information, should the divislon be eliminated? YesStep by Step Solution
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