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Assume a retaliing company has two departments - Department A and Department 8 . The company's most recent contribution format income statement follows: The company

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Assume a retaliing company has two departments - Department A and Department 8 . The company's most recent contribution format income statement follows: The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department A is discontinued the sales in Department B will drop by 18%. What is the financial advantage (disadvantage) of discontinuing Department A? Multiple Choice 5(83.000) 5(92,000) 5(101,000) 5(103,000)

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