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Mountain Company has two operating departments: Mixing and Bottling. Mixing occuples 45,100 square feet, and Bottling occupies 36,900 square feet. Maintenance costs of $402,000 are
Mountain Company has two operating departments: Mixing and Bottling. Mixing occuples 45,100 square feet, and Bottling occupies 36,900 square feet. Maintenance costs of $402,000 are allocated to the operating departments based on square feet occupled. The maintenance costs allocated to the Bottling Department are: Multiple Choice $221,100 $171,910 $281,800 Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and $164,000 of its fixed costs are avoidable. The impact on Vaiber's income from eliminating the Phone division is: Multiple Choice $19,000 decrease Mountain Company has two operating departments: Mixing and Bottling. Mixing occuples 45,100 square feet, and Bottling occupies 36,900 square feet. Maintenance costs of $402,000 are allocated to the operating departments based on square feet occupled. The maintenance costs allocated to the Bottling Department are: Multiple Choice $221,100 $171,910 $281,800 Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and $164,000 of its fixed costs are avoidable. The impact on Vaiber's income from eliminating the Phone division is: Multiple Choice $19,000 decrease
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