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AHD Company operates two divisions: Hootie and Ronin. A segmented profit and loss statement for the company's most recent year is as follows: 6 Required
AHD Company operates two divisions: Hootie and Ronin. A segmented profit and loss statement for the company's most recent year is as follows: 6 Required A) If the Hootie Division increased its sales by $85000 per year, how much would the company's net profit change? Assume that all cost behaviour patterns remained constant. B) Assume that the Ronin Division increased sales by $100000, the Hootie Division sales remained the same, and there was no change in fixed costs. i) Calculate the net profit amounts for each division and the total company. ii) Calculate the segment margin ratios before and after these changes and comment on the results. Explain the changes
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