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A study has been conducted to determine if one of the departments in Barry Corporation should be discontinued. The contribution margin in the department is
A study has been conducted to determine if one of the
departments in Barry Corporation should be discontinued. The
contribution margin in the department is $ per year. Fixed
expenses charged to the department are $ per year. It is
estimated that $ of these fixed expenses could be eliminated
if the department is discontinued. These data indicate that if the
department is discontinued, the company's overall net operating
income would:
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