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Mars Company has an unprofitable finishing division that they are thinking of dropping. The information on the division follows: Sales Revenue $6,500,000 Variable Expenses 4,000,000

  1. Mars Company has an unprofitable finishing division that they are thinking of dropping. The information on the division follows:

Sales Revenue

$6,500,000

Variable Expenses

4,000,000

Traceable fixed expenses

2,000,000

Common fixed expenses

600,000

Net Loss

(100,000)

Required: Should Mars Keep or Drop the Finishing Division

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