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Assume a division's sales revenue is $370,000, cost of goods sold is $293,000, variable sales commissions are $34,000, and fixed operating costs are $92,000. If
Assume a division's sales revenue is $370,000, cost of goods sold is $293,000, variable sales commissions are $34,000, and fixed operating costs are $92,000. If 90% of the fixed operating costs are avoidable, should the division be closed? ( ) Yes, the company would be better off by $39,800. 0 Yes, the company would be better off by $49,000. 0 No, the company would be worse off by $33,800. 0 No, the company would be worse off by $43,000. 0 None of the answers is correct
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