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Manor Company Plans to Discontinue a Department That Has a Contribution

question 22

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Manor Company plans to discontinue a department that has a contribution margin of $24,000 and $48,000 in fixed costs.:


Definitions:

Freight Costs

The expenses associated with transporting goods from one location to another.

FOB Destination

A shipping term indicating that the seller bears freight charges and owns the goods until they are delivered to the buyer’s location.

Freight Charges

Costs associated with transporting goods from one place to another.

FOB Destination

A shipping term indicating that the seller pays for transportation and is responsible for the goods until they are received by the buyer.

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