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XYZ Company is considering closing one of its locations. The most recent financial results for this location included: net operating loss ($50,000), contribution margin of
XYZ Company is considering closing one of its locations. The most recent financial results for this location included: net operating loss ($50,000), contribution margin of $100,000 and avoidable costs of $75,000. Based upon this information and assuming that all sales at this location would be lost the location were closed, XYZ Company should close this location.
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