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Manor Company Plans to Discontinue a Department That Has a Contribution

question 44

Multiple Choice

Manor Company plans to discontinue a department that has a contribution margin of $25,000 and $50,000 in fixed costs.Of the fixed costs,$21,000 cannot be eliminated.The effect on the profit of Manor Company of discontinuing this department would be:

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Definitions:

Tax Rate

The percentage at which income or financial transactions are taxed by the government.

Total Savings

The sum of all savings held by an individual or institution, often including bank accounts, investments, and other forms of financial reserves.

Annual Return

The percentage change in value of an investment over a one-year period, accounting for any dividends or interest earned.

Yearly Contribution

The amount of money contributed to an investment or savings account on an annual basis.

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