What is the change in profits if the sales territory

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Reference no: EM133432439

Question: A firm predicts the following financial information for one of its sales territories: sales = £100,000; total variable costs = £60,000; total contribution = £40,000; total fixed costs = £50,000; profit = (10,000). Based on these numbers, the firm considers discontinuing the sales territory. If 50 per cent of the fixed costs are avoidable, what is the change in profits if the sales territory is discontinued?

Reference no: EM133432439

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