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Diego is considering eliminating the West region because an internally generated report suggests the region s total gross margin in the first year of operations
Diego is considering eliminating the West region because an internally generated report suggests the regions total gross margin in the first year of operations was $ less than its traceable fixed selling and administrative expenses. Diego believes that if it drops the West region, the East region's sales will grow by in Year Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year what would be the profit impact of dropping the West region in Year
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