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Epsilon Company's is projecting a net loss of $100,000. To reduce this loss it is is trying to decide whether or not to close Division
Epsilon Company's is projecting a net loss of $100,000. To reduce this loss it is is trying to decide whether or not to close Division A. The total contribution margin for Division A is $450,000 and the total fixed costs are $600,000, of which $200,000 are allocated and would have to be absorbed by other divisions in the company if Division A is closed. If Division A is closed what will be the revised income projection for Epsilon Company? Select one: O none of these $150,000 net profit $250,000 profit O $150,000 net loss
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