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Author Question: Brandy Company is deciding whether or not to discontinue one of its divisions. The division's ... (Read 52 times)

kandiwilson165@gmail.com

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on: Feb 5, 2023

Question 1

In a decision to add or eliminate a product or service, which of the following is an avoidable cost?
◦ Depreciation
◦ Variable overhead
◦ Allocated overhead
◦ Common costs

Question 2

Brandy Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $27,000 per year. The fixed costs charged to the division total $32,000, but $15,000 would be eliminated if the division is discontinued. If the division is eliminated, the overall operating income will
◦ decrease by $9,000.
◦ decrease by $15,000.
◦ decrease by $12,000.
◦ increase by $27,000.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by kandiwilson165@gmail.com on Feb 5, 2023

StephaniaF

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Reply #1 on: Feb 5, 2023
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kandiwilson165@gmail.com

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

carojassy25

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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