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Assume a retailing company has two departments-Department A and Department. The company's most recent contribution format income statement follows: Sales Variable expenses Contribution margin Fixed

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Assume a retailing company has two departments-Department A and Department. The company's most recent contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating Income (loss) Total $ 800,000 350,000 450,000 400,000 $ 50.000 Department $ 350,000 250,000 100,000 140,000 $ (40,000) Department $ 450,000 100,000 350,000 260.000 $ 90,000 The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that will continue the segment is discontinued. However, if Department Als discontinued the sales in Department will drop by 18%. What is the financial advantage Idisadvantage) of discontinuing Department A? Multiple Choice loria's $183,000) $192,000) $(101,000) O $(103,000)

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