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Segment A has sales revenue of $900,000 and the following costs: direct materials $252,000; direct labor $36,000; variable manufacturing overhead, $72,000; and fixed manufacturing overhead,
Segment A has sales revenue of $900,000 and the following costs: direct materials $252,000; direct labor $36,000; variable manufacturing overhead, $72,000; and fixed manufacturing overhead, $315,000. If segment A is dropped, 25% of the fixed manufacturing overhead cost would be avoided. Calculate the segment profit.
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