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Storeby Company has multiple business units. Unit 1 has the following information: Sales revenue: $ 2 0 0 , 0 0 0 Variable expenses: 1

Storeby Company has multiple business units. Unit 1 has the following information: Sales revenue: $200,000 Variable expenses: 140,000 Fixed expenses: 100,000 Fixed expenses, which are mostly represented by shared capacity costs (e.g ., rent, depreciation, etc. for the factory as a whole), are allocated evenly to business units. Harry, a manager within Storeby Company, is wondering whether Storeby Company should drop Unit 1. Which of the following statements are true? (Check all that apply.)1 point If the fixed expenses are avoidable, they are relevant. The $200,000 in sales revenue is relevant. If the fixed expenses are unavoidable, they are relevant. The $140,000 in variable expenses is relevant.
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