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5) The Paint Division for the ABC Company located in Toronto, Ontario has the following financial information: Sales $500,000 Variable costs $300,000 Fixed costs $250,000

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5) The Paint Division for the ABC Company located in Toronto, Ontario has the following financial information: Sales $500,000 Variable costs $300,000 Fixed costs $250,000 If this division is eliminated, all the fixed costs will be allocated to the company's other two divisions. Calculate the incremental effect on the company's total net income if the Paint division is dropped

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