Using the data given in Exercise 25.5, would you recommend closing Department 1? Why or why not?
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Brentwood Inc Income Statement (Partial For Year Ended December 31, 2016 Department 1 Department 2 Total Net Sales 4 00 000 7000 0011 000 00 0lo 0 00 Cost of Goods Sold 280 000 Gross on Sales 8 Direct Expenses 7400 0 4 550loo 191000 Contribution Margin Indirect Expenses et Income 143 000 90ol0 75 0oo 6 6000
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Department 1 should not be closed It would reduce net income by 70 ...View the full answer
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Related Book For
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
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