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Mxhelle Walker, recent graduste of Clinton University's accounting grogram, evaluated the operating performance of Sweet Acacia Compary/ ssix divisions Michelle made the followirg presentation to
Mxhelle Walker, recent graduste of Clinton University's accounting grogram, evaluated the operating performance of Sweet Acacia Compary/ ssix divisions Michelle made the followirg presentation to 5 weet Acacia's board of directors and sugsested the Erie division beceiminated, "If the Erie division is eliminated, she said, "our total profits would increase by $23.500 " In the Erie division, the cost of gocds sold is $59,700 variable and $16. 400 fied and operating eqperses are 515,300 variable and $32.200 fured None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Nichelle right about eliminating the Ene Division? Prepare a schedule to support your answer, in on ameunt refices the net income then enter with a negative :ign presedling the number es. 15,000 or porenthesis es (15000: )
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