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The Dropinsky Company's Management Wants to Determine If Segment B

Question 74

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The Dropinsky Company's management wants to determine if Segment B should be eliminated.The following data are available (in thousands).
The Dropinsky Company's management wants to determine if Segment B should be eliminated.The following data are available (in thousands). a.Assuming all direct fixed costs of Segment B are avoidable,what would be the change in operating income if Segment B were eliminated? b.Assuming one-half of the direct fixed costs of Segment B are avoidable,what would be the change in operating income if Segment B were eliminated?
a.Assuming all direct fixed costs of Segment B are avoidable,what would be the change in operating income if Segment B were eliminated?
b.Assuming one-half of the direct fixed costs of Segment B are avoidable,what would be the change in operating income if Segment B were eliminated?

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