Question
Contribution Margin of Walls Corporation, Consumer division is Rs. 1900,000 and the fixed expenses is Rs. 2,200,000 per year. Company is considering to eliminate this
Contribution Margin of Walls Corporation, Consumer division is Rs. 1900,000 and the fixed expenses is Rs. 2,200,000 per year. Company is considering to eliminate this consumer division. If the Consumer Division is eliminated, $1,700,000 of the above fixed expenses could be avoided. What will be the effect on Wall's profit next year if Consumer Division is eliminated?
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
3rd Edition
133427889, 978-0133427882
