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Department B of the local Top Value Store shows a contribution to common expenses of $22,000 and a net loss of $9,000 (before taxes). The
Department B of the local Top Value Store shows a contribution to common expenses of $22,000 and a net loss of $9,000 (before taxes). The firm believes that discontinuing department B will not affect sales, gross profit, or traceable expenses of other departments. If total common expenses remain unchanged, what effect will discontinuing department B have on the income before taxes of the Top Value Store?
Use a negative number to indicate a decrease in net income or a positive number to indicate an increase.
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