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Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building
Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold.
Advertising expense$140,000Supervisory salaries300,000Allocation of companywide facility-level costs130,000Original cost of building220,000Book value of building100,000Market value of building160,000Maintenance costs on equipment112,000Real estate taxes on building12,000
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Determine the amount of avoidable cost associated with the segment
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