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Consider the Marshall Company's Segment Analysis: Common Costs Are

Question 33

Multiple Choice

Consider the Marshall Company's segment analysis: Consider the Marshall Company's segment analysis: Common costs are allocated arbitrarily based on sales dollars. If Marshall eliminates Segment B, what is the impact on the operating loss of the company? A) The loss decreases by $40,000. B) The loss increases by $20,000. C) The loss decreases by $60,000. D) The loss increases by $40,000. Common costs are allocated arbitrarily based on sales dollars. If Marshall eliminates Segment B, what is the impact on the operating loss of the company?


A) The loss decreases by $40,000.
B) The loss increases by $20,000.
C) The loss decreases by $60,000.
D) The loss increases by $40,000.

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