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One Department in a Company Had a Contribution Margin of $15,000

Question 63

Multiple Choice

One department in a company had a contribution margin of $15,000 and a net loss from operations of $2,000.The indirect expenses allocated to this department would have been incurred whether or not the department existed.If this department had been eliminated,the company's reported net income would have been


A) $2,000 higher.
B) $15,000 lower.
C) $13,000 lower.
D) the same with or without the department.

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