The discount division of a diversified retailer has revenues of $10,000,000,direct costs of $8,000,000,and indirect costs of $3,000,000.What is the short-run impact of eliminating this division?

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Eliminating the discount division would remove its revenue of $10,000,000, but would also remove the direct costs of $8,000,000 associated with it. However, the indirect costs of $3,000,000 would remain, resulting in a net decrease of $2,000,000 in the short-run profit.

The Discount Division of a Diversified Retailer Has Revenues of $10,000,000,direct