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Partyka Corporation has four operating divisions. The budgoted revencos and expenses for each division for 2020 follows: IIII (Click to view the results of each
Partyka Corporation has four operating divisions. The budgoted revencos and expenses for each division for 2020 follows: IIII (Click to view the results of each division) Closing down any division would result in savings of 50% of the fixed costs of that division. Top management is very concerned about the unproftable divisions ( A and B) and is considering closing them for the year. Read the requirements: Requirement 1. Calculate the increase or decrease in operating incorne if Partyka coses division A Begin by calculating Division A's contribution margin. Partyka Corporation has four operating divisions. The budgeded tevenues and expenses for each division for 2020 follows: HA (Click to view the results of each division) Data table Further analysis of costs reveals the following porcontages of variable costs in each division. Partyka Corporation has four operating divisions, The budgeted revenues and exponses for each division for 2020 follows: \#\# (Click to view the results of each division.) tis very concerned about the unprofitable Requirements 1. Calculate the increase or decrease in operating income if Partyka closes division A 2. Calculate the increase or decrease in operating income it Partyka closes division B. 3. What other factors should the top management of Partyka consider before making a decision
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