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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $22,000 and $78,000 in annual fixed costs. Of the fixed costs,
Fabri Corporation is considering eliminating a department that has an annual contribution margin of $22,000 and $78,000 in annual fixed costs. Of the fixed costs, $24,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice ($56,000) $56.000 ($32,000) $32,000 Two products, QI and VH, emerge from a joint process. Product Ql has been allocated $15,300 of the total joint costs of $36,000. A total of 2,200 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $10 per unit, or it can be processed further for an additional total cost of $10,200 and then sold for $12 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point? Multiple Choice ($ 21,900) $(5.800) $16,200 ($9,500)
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