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past year, internal reporting showed the followines In Sanders Corporation's accounting system, all fixed expenses of the company are fully allocated to products. Further investigation
past year, internal reporting showed the followines In Sanders Corporation's accounting system, all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $145,000 of the fixed manufacturing expenses ahd $103,000 of the fixed selling and administrative expenses are avoidable if the division is dropped from the company. The financial advantage (disadvantage) for the company of eliminating this division for the upcoming year would be: allocatea to proaucts. 1-urner invesugation nas reveaied tnat \$145, UuU or the nxed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if the division is dropped from the company. The financial advantage (disadvantage) for the company of ellminating this division for the upcoming year would be: Multiple Choice ($162,000) $162,000 ($15,000) $15,000
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