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In the Erie Division, cost of goods sold is $60,000 variable and $16,500 fixed, and operating expenses are $25,000 variable and $23,000 fixed. None of the Erie Division's fixed costs will be eliminated if the division is discontinued.Would you discontinue, why?
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White Division Grey Division
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On August 1, 2015, $100,000 of the bonds were converted. Interest has been accured monthly and paid as due. Any interest accured at the time of conversion of the bonds is paid in cash.
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