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Costco Company is considering eliminating its backpack division, which reported a loss for the recent year of $52,000 as shown below. Segment Income (Insc) If
Costco Company is considering eliminating its backpack division, which reported a loss for the recent year of $52,000 as shown below. Segment Income (Insc) If the backpack division is dropped, all $475,000 of its variable costs are avoidable, and $223,200 of its fixed costs are avoidable. The impact on Costco's income from eliminating this business segment would be (increase should be entered as a positive number and decrease in income should be entered as a negative number, i.e. decrease of 2,200 should be entered as -2200 )
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