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Cody Reese, Manager of Cobra Sports, Inc

Question 96

Multiple Choice

Cody Reese, manager of Cobra Sports, Inc., decided to eliminate its Division A. Division A had a contribution margin of $14,000 and a loss from operations of $2,500. What other information does Cody need to make the correct decision?


A) which direct expenses will still be incurred.
B) the amount of Cost of Goods Sold.
C) the Gross Profit on Sales.
D) which of the indirect expenses will still be incurred.

Correct Answer:

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