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A company is considering selling one of its operating divisions. The controller prepared the following analysis to support the decision to sell the division. (in

A company is considering selling one of its operating divisions. The controller prepared the following analysis to support the decision to sell the division. (in $billion)

Sales $45

Cost of Goods Sold $30

SG&A (75% variable) $8

Variable Overhead $2

Allocated Fixed Overhead $3

How much profit would the company lose if it sold the division?

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