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The drop-down list for above Monty Company has three departments. Data for the most recent year is presented below: M L B $1,990 700 $990
The drop-down list for above
Monty Company has three departments. Data for the most recent year is presented below: M L B $1,990 700 $990 260 $378 190 Sales Variable expenses Fixed expenses: Unavoidable Avoidable 430 260 5 530 560 300 Compute the operating income of the company. Operating income Compute the contribution margin and operating income of each department. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Departments Contribution margin Operating income / loss M $ L B Should any department(s) be eliminated? Which one(s)? should be eliminated. Departments M and B Departments M, L and B Department B Departments M and L Departments L and B No department Department M Department LStep by Step Solution
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