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How the company overall operating income per year

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Reference no: EM132550865

Question 1: A study has been conducted to determine if one of the departments in Parry COmapany should be discontinued. The CM in the department is $50000 per year. Fixed expenses charged to the department are $65000 per year. It is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department were discontinued, the company's overall operating income per year would change by how much?

Reference no: EM132550865

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