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Twinky Company has two divisions - OM and MG . The divisions have the following revenues and expenses: The management at Twinky is pondering the
Twinky Company has two divisions OM and MG The divisions have the following revenues and expenses:
The management at Twinky is pondering the elimination of the MG Division for the past several years. If
the MG division were eliminated, its traceable fixed costs could be avoided. The total common costs would
be unaffected by this decision. Given these data, the elimination of the MG division would result in an
overall company operating income of
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