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Analyze the Following Divisions of Johannes' Clothing Company

Question 123

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Analyze the following divisions of Johannes' Clothing Company.Management has to make a decision whether to close one of the divisions or keep both open.Make a recommendation to management based on the information given.Of the fixed costs,parts are controllable within the divisions,but $31,000 of the total are company headquarters fixed costs.Of these,$16,000 are allocated to the Skirt Division and $15,000 to the Shirt Division. Analyze the following divisions of Johannes' Clothing Company.Management has to make a decision whether to close one of the divisions or keep both open.Make a recommendation to management based on the information given.Of the fixed costs,parts are controllable within the divisions,but $31,000 of the total are company headquarters fixed costs.Of these,$16,000 are allocated to the Skirt Division and $15,000 to the Shirt Division.

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Both divisions have positive contributio...

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