When a department or product line is dropped

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Problem 1: When a department or product line is dropped, the common fixed costs that had been allocated to that department

Option 1: become sunk costs and are not allocated to remaining departments product lines.
Option 2: are allocated to the remaining departments or product lines.
Option 3: become mixed costs of the remaining departments or product lines.
Option 4: are treated as opportunity costs of the remaining departments or product lines.

Reference no: EM132816791

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