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Please show work, thanks 2. Franson Inc., a manufacturer of sports jerseys, is concerned about the financial performance of its soccer jersey division and is
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2. Franson Inc., a manufacturer of sports jerseys, is concerned about the financial performance of its soccer jersey division and is considering eliminating the division. Information about the soccer jersey division appears below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $1,250,000 $950,000 $300,000 $150,000 All fixed expenses are allocated to products. If the soccer jersey division is eliminated, $75,000 of the fixed manufacturing expenses and $60,000 of the fixed selling and administrative expenses are avoidable. What would be the effect on the company's overall net operating income if the soccer jersey division is eliminated? A) Increase $150,000. B) Decrease $150,000. C) Decrease $165,000 D Increase $165,000
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