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How much profit would the company lose

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Question - A company is considering selling one of its operating divisions. The controller prepared the following analysis to support the decision to sell the division.

(in $ billion)

Sales $45

Cost of Goods Sold $30

SG&A (75% variable) $8

Variable Overhead $2

Allocated Fixed Overhead $3

Required - How much profit would the company lose if it sold the division?

Reference no: EM133180231

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