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thank you!! Book Manufacturing Inc. has two divisions-North and South. The divisions have the following revenues and expenses Sales $ 500.000 South $ 550,000 Variable
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Book Manufacturing Inc. has two divisions-North and South. The divisions have the following revenues and expenses Sales $ 500.000 South $ 550,000 Variable costs 200.000 275.000 Traceable fixed costs 150.000 180,000 Allocated common corporate cost 135 000 170 000 Net operating income foss $ 15.000 The management of Book is considering the mination of the South Division, the South Dision were eliminates traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the South Division woud in an overall company net operating income of 75.000 $15.000 (155.000 60.000 Step by Step Solution
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