What will be the effect on companys profit next year


The following information relates to next year's projected operating results of the Male Division of Super Clothing Corporation: Contribution margin $200,000 Fixed expenses 500,000 Net operating loss ($300,000) If Male's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on company's profit next year if male's division is dropped instead of being kept?

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Accounting Basics: What will be the effect on companys profit next year
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