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Question 11 1 pts Clyde's Coffee Inc. collected the data below regarding their two departments, Bean Department and Coffee Department: Bean Department Coffee Department Sales
Question 11 1 pts Clyde's Coffee Inc. collected the data below regarding their two departments, Bean Department and Coffee Department: Bean Department Coffee Department Sales $670,000 $665,000 Direct Expenses 550,000 575,000 Allocated Expenses 175,000 85,000 Department Income (55,000) 5,000 Based on the data presented, which of the following is an accurate conclusion regarding these two departments: The Bean department should be eliminated because it generates negative contribution to overhead. The Bean department should be eliminated due its negative department income. The Bean department should not be eliminated due to its positive contribution to overhead. These departments are both investment centers and therefore cannot be evaluated using anything except ROI and residual income. None of these are correct
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