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MOLIVE 1 points Save Answer Carmichael Corporation is a conglomerate with five divisions, including a Motorcycle Division. In recent months, profits in the Motorcycle Division

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MOLIVE 1 points Save Answer Carmichael Corporation is a conglomerate with five divisions, including a Motorcycle Division. In recent months, profits in the Motorcycle Division have been slightly negative, and management is evaluating whether to drop it. Management commissioned a study to determine if it should be discontinued. The contribution margin in the department is $70.000 per year. Fixed expenses charged to the department are $95.000 per year, it is estimated that 550.000 of these fixed expenses could be eliminated if the Motorcycle Department is discontinued. These data indicate that if the Department is discontinued, the yearly financial advantage disadvantage) for the company would be (525.000 O (520.000) $20,000 O $25.000

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