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Judy Jean, a recent graduate of Rollings accounting program, evaluated the operating performance of Artie Companys six divisions. Judy made the following presentation to Arties
Judy Jean, a recent graduate of Rollings accounting program, evaluated the operating performance of Artie Companys six divisions. Judy made the following presentation to Arties board of directors and suggested the Huron Division be eliminated. If the Huron Division is eliminated, she said, our total profits would increase by SR26,000.
QUESTION 4 Judy Jean, a recent graduate of Rolling's accounting program, evaluated the operating performance of Artie Company's six divisions. Judy made the following presentation to Artie's board of directors and suggested the Huron Division be eliminated. "If the Huron Division is eliminated," she said, "our total profits would increase by SR26,000." In the Huron Division, cost of goods sold is SR61,000 variable and SR15,000 fixed, and operating expenses are SR26,000 variable and SR24,000 fixed. None of the Huron Division's fixed costs will be eliminated if the division is discontinued. Is Judy right about eliminating the Huron Division? Prepare a schedule to support yourStep by Step Solution
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