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Division one has sales of $110,000, variable costs of $120,000 in applied fixed costs of $40,000....

Division one has sales of $110,000, variable costs of $120,000 in applied fixed costs of $40,000. Should I eliminate this division?
Yes, you increase profits by $52,000
Yes because variable costs exceed sales revenues
No you’ll lose $10,000
No you’ll lose $50,000
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