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Q2: The shoe department of a company has revenues of $920,000; variable expenses of $280,000; direct fixed costs of $410,000; and allocated, indirect fixed costs
Q2: The shoe department of a company has revenues of $920,000; variable expenses of $280,000; direct fixed costs of $410,000; and allocated, indirect fixed costs of $320,000 in an average year. If the company eliminates this department, what would be the effect on net income? Should we eliminiate the department? Explain. Decision
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