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QUESTION 15 Sanders Corporation is a conglomerate with a portfolio of consumer products. The corporation has many divisions. One of the divisions has concerned enior

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QUESTION 15 Sanders Corporation is a conglomerate with a portfolio of consumer products. The corporation has many divisions. One of the divisions has concerned enior management due to its consistent lack of profitability. For the past year, Internal reporting showed the following Sales 4730,000 Variable expenses #350,000 Fixed manufacturing expenses $234.000 Fixed selling and administrative expenses $161,000 In Sanders Corporation's accounting system, all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93.000 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: $15,000 ($143,000) O ($15,000) O $143,000

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