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Business, 30.11.2020 18:10 rwlockwood1

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation: Contribution margin 200,000
Fixed Expense 500,000
Net operating loss (300,000)

If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?

a. 50,000 increase
b. 250,000 increase
c. 250,000 decrease
d. 550,000 increase

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The following information relates to next year's projected operating results of the Children's Divis...
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