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Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit.. Status Quo Alternative (do not accept offer) (accept offer) Difference $800,000 $860,000 $60,000 (400,000
Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit.. Status Quo Alternative (do not accept offer) (accept offer) Difference $800,000 $860,000 $60,000 (400,000 (436,000) (36,000 $400,000 $424,000 $24,000 240,000 240,000 $160,000 $184,000 $24,000 Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit.. Status Quo Alternative (do not accept offer) (accept offer) Difference $800,000 $860,000 $60,000 (400,000 (436,000) (36,000 $400,000 $424,000 $24,000 240,000 240,000 $160,000 $184,000 $24,000
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