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RichaDuggi13 RichaDuggi13
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A year ago
Cabells, Inc. has two divisions — Electronics and Appliances. The divisions have provided the following financial information:

​
​ElectronicsAppliances
Sales$310,000 $410,000
Variable costs  225,000  270,000
Avoidable fixed costs    92,000    60,000
Common fixed costs    35,000    35,000
Operating income($  42,000)$  45,000

Cabells' executives are considering the elimination of the Electronics division. If the division is eliminated, the common fixed costs will remain unchanged. Given these data, should the Electronics division be eliminated? Why?
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Managerial Accounting

Managerial Accounting


Edition: 4th
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kady_kelsey2kady_kelsey2
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