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Summer 20 Company has two divisions, Consumer and Industrial. The Consumer Division lost $30,000 and the Industrial Division had operating income of $80,000. Management has
Summer 20 Company has two divisions, Consumer and Industrial. The Consumer Division lost $30,000 and the Industrial Division had operating income of $80,000.
Management has analyzed the situation and wants you to do a differential analysis to determine the increase or decrease in overall operating income based on the following:
Expected decrease in revenues $300,000
Expected decrease in total variable costs $200,000
Expected decrease in fixed costs $102,000
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