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ABC Window Tinting offers Standard and Lux window tinting. These are the contribution income statements for both segments: Management is considering discontinuing the Lux Window
ABC Window Tinting offers Standard and Lux window tinting. These are the contribution income statements for both segments: Management is considering discontinuing the Lux Window Tinting segment due to the lacking profitability. Of the total fixed costs for the Lux segment, $ would not be incurred a cost saving if the segment is dropped. Management expects no changes to the sales of the Standard segment if the Lux segment is discontinued. If the Lux segment is discontinued, what will be the impact on the profit of the company? Enter an increase in profits as positive; enter a decrease in profits as negative.
ABC Window Tinting offers Standard and Lux window tinting. These are the contribution income statements for both segments:
Management is considering discontinuing the Lux Window Tinting segment due to the lacking profitability. Of the total fixed costs for the Lux
segment, $ would not be incurred a cost saving if the segment is dropped. Management expects no changes to the sales of the Standard
segment if the Lux segment is discontinued.
If the Lux segment is discontinued, what will be the impact on the profit of the company? Enter an increase in profits as positive; enter a
decrease in profits as negative.
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