Question
Shows, Inc. is considering eliminating a department that reports a contribution margin of $150000 and fixed costs of $150000. Only $50000 of the fixed costs
Shows, Inc. is considering eliminating a department that reports a contribution margin of $150000 and fixed costs of $150000. Only $50000 of the fixed costs are avoidable.
The annual financial advantage (disadvantage) for Shows of eliminating this department is:
Multiple Choice
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$100000
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$(100000)
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$50000
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$0
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Selected Materials From Managerial Accounting
Authors: Ray H. Garrison
12th Edition
0077331559, 978-0077331559
