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Bryson Company's western territory's forecasted income statement for the upcoming year is as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss)

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Bryson Company's western territory's forecasted income statement for the upcoming year is as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) $700,000 500,000 $200,000 396,000 $(196,000) Bryson Company's management is considering dropping the western territory. If the company eliminates $196,000 of fixed costs by dropping the segment, the segment should be dropped. O O True False

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