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On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Childrens Shoes because it reduced income from operations
On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Childrens Shoes because it reduced income from operations by $17,000. What is the flaw in this decision, if it is assumed fixed costs would not be materially affected by the discontinuance? (Prepare the Differential Analysis before responding to the questions.) Featherweight Shoes Inc.
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