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What will be the effect on abc corporation profit next year

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Reference no: EM132811747

The following information relates to next year's projected operating results of the Department Division of ABC Corporation:

Contribution Margin: $1,800,000
Fixed Expenses : $2,100,000
Net Operating Loss : (300,000)

Problem 1: If the Department Division is eliminated, $1,600,000 of the above fixed expenses could be avoided. What will be the effect on ABC corporation profit next year if Consumer Division is eliminated?

Reference no: EM132811747

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