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Finlay Grace Sullivan and Company has two sales office: one located in Portland, Maine and one in Portsmouth, New Hampshire. Managment is considering dropping the

Finlay Grace Sullivan and Company has two sales office: one located in Portland, Maine and one in Portsmouth, New Hampshire. Managment is considering dropping the Portland offcie. the company's record report the following information:

Portland Portsmouth
Sales $40000 $50000
Direct Costs
Variable $15000 25000
Fixed 10000 10000

What will be the effect on income if the Portland office is eliminated and half of it fixed costs are avoided?

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