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Assume that, for recent periods, the reported operating earnings for a particular segment of a company are negative (i.e., a net loss) and that management
Assume that, for recent periods, the reported operating earnings for a particular segment of a company are negative (i.e., a net loss) and that management is considering eliminating the segment. What aspects of the revenues and costs for the segment should be considered when making this segment elimination decision? What qualitative factors should also be considered?
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