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A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40%
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on information, should the division be eliminated?
1-a: Compare the amounts of total revenues and total avoidable expenses.
1-b: Based on this information, should the division be eliminated?
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