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Campbell Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs If the segment is eliminated, the building
Campbell Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs If the segment is eliminated, the building it uses will be sold and the supervisor will be laid-off. Advertising expense $ 91,000 Supervisory salaries 168,000 Allocation of companywide facility-level costs 65,000 Original cost of building 127,000 Book value of building 60,000 Market value of building ("Foregone benefit" if we keep the segment operating) 85,000 Maintenance costs on equipment 83,000 Real estate taxes on building 10,000 Required Applying "Relevant Information" rules, determine the avoidable (relevant) amount associated with eliminating the segment. Avoidable cost
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