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Jerry Mounds,controller for Pearl Distributing,has Prepared the Following Financial Information

Question 7

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Jerry Mounds,controller for Pearl Distributing,has prepared the following financial information for the most recent period showing profitability the of its three departments :
Jerry Mounds,controller for Pearl Distributing,has prepared the following financial information for the most recent period showing profitability the of its three departments :    The factory rent of $3,200 assigned to Department C is avoidable if the department is eliminated.Depreciation will remain unchanged if a department is dropped.Discontinuing Department C will reduce the utilities by $600. Required: Prepare an analysis showing whether Department C should be eliminated. The factory rent of $3,200 assigned to Department C is avoidable if the department is eliminated.Depreciation will remain unchanged if a department is dropped.Discontinuing Department C will reduce the utilities by $600.
Required:
Prepare an analysis showing whether Department C should be eliminated.

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Avoidable items if Department ...

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