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What the effect on the overall profit of the organisation

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Problem 1: Division K has a contribution margin of $100 000 and fixed costs traceable to the division of $25 000 mean it is making a divisional margin of $75 000. However after the allocation of $90 000 of common costs, which would not be saved if the division were to be closed, it is making a loss of $15 000. Assuming all other factors are equal, if the division were closed, the effect on the overall profit of the organisation would be

Reference no: EM132740014

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