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What is the incremental effect on net income

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Reference no: EM131772474

Question - North Division has the following information:

Sales $900,000

Variable expenses 480,000

Fixed expenses 465,000

If this division is eliminated, the fixed expenses will be allocated to the company's other divisions. What is the incremental effect on net income if the division is dropped?

$45,000 increase

$465,000 decrease

$420,000 decrease

$435,000 increase

Reference no: EM131772474

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