QuestionBofS _/1 E View Policies Current Attempt in Progress Oriole's two divisions. Mid and...
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QuestionBofS _/1 E View Policies Current Attempt in Progress Oriole's two divisions. Mid and West. have been competing since the company began 20 years ago. Manage rs in the Wild division generated the top sales for the first 10 yea rs. while the West division has been the sales lead er for the last 10 yea rs. For the past 2 years. the Wild division has shown an ope rating loss. As a result. management is considering closing down the Wild division and operating with just one division going forward. Projected amounts for the Wild division this year include sales of 538 6.600. variable costs of 551.600. and total xed costs of $43,300. Of the total xed costs. $21200 will continue whether the division is dropped or not} the remaining 516.100 is for supervisor salaries, positions that would be eliminated. How much of the Wild division's xed costs are direct versus allocated? Direct Allocated Fixed costs 5 5 Should Oriole close the division? Segment margin 5 Oriole v close the Wild division. eTextbook and Media
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