Brady Industries is deciding whether or not to discontinue its Agave Division. The divisions contribution...
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Accounting
Brady Industries is deciding whether or not to discontinue its Agave Division. The divisions contribution margin is $48,600 per year. The fixed costs charged to the division total $57,600 but $27,000 would be eliminated if the division is discontinued. If the division is eliminated, Bradys overall operating income would: Answers: Increase by $9,000. Decrease by $48,600. Decrease by $18,000. Decrease by $21,600. None of the answers is correct.
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