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Departments in Parry company

A study has been conducted to determine if one of the departments in Parry Company should bediscontinued. The contribution margin in the department is $50,000 per year. Fixed expenses charged to thedepartment are $65,000 per year. It is estimated that $40,000 of these fixed expenses could be eliminated if thedepartment is discontinued. These data indicate that if the department is discontinued, the company’s overallnet operating income would:…

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