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Vaiber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its
Vaiber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and $150,000 of its fixed costs are avoidable. The impact on Valber's Income from eliminating the Phone division is Sales Desktops $356,000 Laptops $871,500 Tablets $694,000 Phones $975,000 Variable conte 201,000 635,000 528,000 795,000 Contribution margin 155,000 236,500 166,000 180,000 Fixed costs 71,200 174,300 138,000 195,000 Net incone (loss) 83,800 62,200 27.200 (15,000) Multiple Choice $15,000 increase O $30,000 O $30,000 dece $150.000 < Prev 24 of 40 Next
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