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A manager is in charge of a profit center department. He reports the following figures: COGS = $60,000. (Allocated) administrative expense = $16,000. (Allocated)
A manager is in charge of a profit center department. He reports the following figures: COGS = $60,000. (Allocated) administrative expense = $16,000. (Allocated) indirect expense = $51,000. You are the firm's CEO. You are considering whether to "spin-off" (sell) the department in the short run. What is the minimum amount of sales the manager must report for you to not spin-off the department?
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
