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Magnus Division Earns a Contribution Margin of $200,000 and Has

Question 15

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Magnus Division earns a contribution margin of $200,000 and has a division margin of $75,000. If Magnus Division is closed, the firm can eliminate all of the direct division expenses and $110,000 of common expenses.
How will closing the division affect the firm's operating income?

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Eliminating the division will eliminate ...

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