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Business, 03.06.2020 13:07 janeou17xn
Opal Company has multiple business units. Unit 1 has the following information: Sales revenue: $200,000 Variable expenses: 140,000 Fixed expenses: 100,000 Fixed expenses, which are mostly represented by shared capacity costs (e. g., rent, depreciation, etc. for the factory as a whole), are allocated evenly to business units. Harry, a manager within Opal Company, is wondering whether Opal should drop Unit 1. Which of the following statements are true? (Check all that apply.)a. Total profit will increase by $40,000.b. Total profit will decrease by $40,000.c. Total profit will decrease by $60,000.d. Total profit will not change.
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Opal Company has multiple business units. Unit 1 has the following information: Sales revenue: $200,...
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