1 Valber Company is considering eliminating its Phone division. The company allocates fixed...
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1 Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and $168,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone division is: Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops $ 410,000 219,000 191,000 89, 200 101,800 Laptops $ 925,500 653,000 272,500 192,300 80,200 Tablets $ 748,000 546,000 202,000 156,800 45,200 Phones $ 993,000 813,000 180,000 213,000 (33,000) ook Multiple Choice $23,000 decrease
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