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What will be the effect on Xampa profit next year

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Question - The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation:

Contribution margin $1,800,000

Fixed expenses 2,100,000

Net operating loss ($300,000)

If the Consumer Division is eliminated, $1,600,000 of the above fixed expenses could be avoided. What will be the effect on Xampa's profit next year if Consumer Division is eliminated?

Reference no: EM133120857

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