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The IBM Division of Picatinny Arsenal is considering eliminating product HMX. The division has provided you with the division's budget for the upcoming year as
The IBM Division of Picatinny Arsenal is considering eliminating product HMX. The division has provided you with the division's budget for the upcoming year as shown below. Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $980,000 $394,000 $376,000 $256,000 The IBM division's accounting system allocates all fixed expenses of the division to products. You have investigated and found that $245,000 of the foxed manufacturing expenses and $206,000 of the fixed selling and administrative expenses are avoidable if product HMX is discontinued. What would be the financial advantage (disadvantage) for the IBM Division if HMX were eliminated for the upcoming year? Multiple Choice $(46,000) Multiple Choice $(46,000) $135,000 o $46,000 O $(135,000)
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