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Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $95,000 as shown below. If the Small
Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $95,000 as shown below. If the Small Tools Division is dropped, all of its variable costs are avoldable, and $92,000 of its fixed costs are avoidable. The impact on Carns's income from eliminating the Small Tools Division would be: Multiple Choice $43,000 decrease $92,000 decrease $88,300 decrease $43,000 increase $230,000 decrease
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