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Shelley Company has five divisions. They plan to drop one division with the following information: Sales Variable Costs Contribution Margin Fixed Expenses Income $50,000 30.000
Shelley Company has five divisions. They plan to drop one division with the following information: Sales Variable Costs Contribution Margin Fixed Expenses Income $50,000 30.000 20,000 50,000 ($30,000 Of the Fixed Expenses charged to this division, $10,000 are sunk and the rest can be eliminated if the division is dropped. The effect of dropping the division on Shelley Company income would be: a decrease of $30,000 an increase of $20,000 an increase of $25,000 an increase of $30.000 O a decrease of $15,000
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