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    Operating income, contribution margin of each department

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    X Y Z

    Sales $400 $200 $80

    Variable expenses 128 52 34

    Fixed expenses:

    Unavoidable 96 52 12

    Avoidable 116 104 54

    Required:

    a. Compute the operating income of the company.

    b. Compute the contribution margin and operating income of each department.

    c. Should any department(s) be eliminated? If so, which one(s) and why?

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    https://brainmass.com/statistics/descriptive-statistics/operating-income-contribution-margin-department-347646

    Solution Preview

    Please find the solutions attached

    a. ($400 + $200 + $80) - ($128 + $96 + $116 + $52 + $52 + $104 + $34 + $12 + $54) = $32

    b. X: $400 $128 = ...

    Solution Summary

    The expert examines operating income and contribution margin for each department.

    $2.19

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