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Sunland Division has the following data: Sales $497000 Variable expenses 242000 Fixed expenses 272000 The fixed costs are not avoidable and must be allocated to
Sunland Division has the following data:
Sales | $497000 |
Variable expenses | 242000 |
Fixed expenses | 272000 |
The fixed costs are not avoidable and must be allocated to profitable divisions if the segment is eliminated. What will be the incremental effect on net income if Sunland Division is eliminated?
$225000 increase
$255000 decrease
$272000 decrease
Cannot be determined from the data provided
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