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Miller Goodlife Corporation has two divisions--Brewing and Botting. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate

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Miller Goodlife Corporation has two divisions--Brewing and Botting. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate feed costs Net operating income foss) Brewing $720.000 370.000 130.000 120,000 $100,000 Bottling $350,000 240,000 80,000 50,000 $120.000 Management has looked at their financials and it appears that the Botting division is losing money so they were thinking of outsourcing this operation to a bottling company that can do it quicker with less spilage. If the Bottling Division were eliminated, its traceable foxed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the Bottling Division would result in an overall company net operating income of $100,000 $50,000 $80,000 O $120,000

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