A study has been conducted to determine if one of the departments in Parry Company should...
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A study has been conducted to determine if one of the departments in Parry Company should be discontinued. The contribution margin in the department is $70,000 per year. Fixed expenses charged to the department are $63,000 per year. It is estimated that $50,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department were discontinued, the company's overall operating income per year would change by how much? A study has been conducted to determine if one of the departments in Parry Company should be discontinued. The contribution margin in the department is $70,000 per year. Fixed expenses charged to the department are $63,000 per year. It is estimated that $50,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department were discontinued, the company's overall operating income per year would change by how much?
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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