Reference no: EM132920962
Question - Vernon Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold.
Advertising expense $83,000
Supervisory salaries 178,000
Allocation of companywide facility-level costs 56,000
Original cost of building 128,000
Book value of building 57,000
Market value of building 87,000
Maintenance costs on equipment 71,000
Real estate taxes on building 15,000
Required - Determine the amount of avoidable cost associated with the segment.
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