Nicolette Corporation operates in a decentralized format. Each segment prepares financials, showing segment profits/losses incurred each fiscal
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Nicolette Corporation operates in a decentralized format. Each segment prepares financials, showing segment profits/losses incurred each fiscal period. One division has been a constant loss leader for the company. Their latest results are as follows:
Sales $1,200,000
Variable costs $1,050,000
Fixed costs $350,000
Assuming none of the fixed costs are avoidable, what is the effect on overall firm profits if this division is eliminated? If profits go down enter amount as a negative.
Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
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