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Pioneer Corporation currently has two divisions which had the following operating results for last year Sales Variable costs Contribution margin Traceable fixed costs Allocated
Pioneer Corporation currently has two divisions which had the following operating results for last year Sales Variable costs Contribution margin Traceable fixed costs Allocated common corporate fixed costs Net operating income (loss) Alex Division Company Total $1,020,000 514,000 506,000 Paige Division $ 600,000 5 420,000 250,000 264,000 350,000 156,000 160,000 132,000 292,000 80,000 54,000 134,000 $110,000 $ (30,000) $ 80,000 Because the Paige Division sustained a loss, the president of Pioneer is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Paige Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been (Indicate the financial disadvantage with a "" sign in front of your numeric answer) Numeric Response
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