M Company has two divisions East Division and West Division. For the last quarter...
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M Company has two divisions East Division and West Division. For the last quarter the East Divisions segment margin was ($8,000). West Divisions sales were $120,000. West Divisions contribution margin was $30,000 and its segment margin was $20,000. If East Division is discontinued, it is estimated that West Division sales will increase by 15%. Discontinuing East Division should increase company profits by:
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