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Suess Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $155,000 of the

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Suess Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $155,000 of the fixed costs allocated to that division could be eliminated. The impact on Suess's operating income from eliminating the phone division would be: Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops $371,000 206,000 165,000 76,200 88,800 Laptops $886,500 640,000 246,500 179,300 67,200 Tablets $ 709,000 533,000 176,000 143,800 32,200 Phones $980,000 800,000 180,000 200,000 (20,000) Multiple Choice $25,000 decrease $20,000 increase $155,000 decrease O $10,000 decrease $155.000 Increase

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