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There are 6 divisions in Orchard Corporation that share in the allocation of the overhead of Orchard so that divisional managers can estimate their division's
There are 6 divisions in Orchard Corporation that share in the allocation of the overhead of Orchard so that divisional managers can estimate their division's portion of expenses that are incurred by corporate headquarters. The Metro Division is being considered for closing. Information about its operations are as follows: Sales $6,100,000 Variable Operating costs $4,940,000 Traceable Fixed Operating costs $2,440,000 Allocated Corporate Overhead $250,000 All of the traceable fixed costs will be eliminated if the division is closed. If it is, how will the overall income of Orchard change? Select one: O A. Increase by $1,280,000 O B. Decrease by $1,410,000 O C. Decrease by $910,000 O D. Decrease by $5,850,000 . E. Increase by $1,530,000 Clear my choice
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