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    Managerial Accounting Study Set 18
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    Exam 7: Incremental Analysis for Short-Term Decision Making
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    Shirley Inc
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Shirley Inc

Question 1

Question 1

Essay

Shirley Inc. has three divisions, King, West and Gold. All fixed costs are unavoidable. Following is the income statement for the previous year: Shirley Inc. has three divisions, King, West and Gold. All fixed costs are unavoidable. Following is the income statement for the previous year:   a. What would Shirley's profit margin be if the West division were dropped? b. What would Shirley's profit margin be if the Gold division were dropped? a. What would Shirley's profit margin be if the West division were dropped?
b. What would Shirley's profit margin be if the Gold division were dropped?

Correct Answer:

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