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Culbertson Co. is considering closing down one of its divisions. The division presently has a contribution margin of $754614. Overhead allocated to the division is
Culbertson Co. is considering closing down one of its divisions. The division presently has a contribution margin of $754614. Overhead allocated to the division is $1113543, of which $128386 cannot be eliminated. If this division were discontinued, by what amount would Culbertson?s pretax income increase (decrease)?
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