Requirements 1. Calculate the increase or decrease in operating income if Primero closes division A....
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Requirements 1. Calculate the increase or decrease in operating income if Primero closes division A. 2. Calculate the increase or decrease in operating income if Primero closes division B. 3. What other factors should the top management of Primero consider before making a decision? Data table Further analysis of costs reveals the following percentages of variable costs in each division: Primero Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2020 follows: (Click to view the results of each division.) Closing down any division would result in savings of 50% of the fixed costs of that division. Top management is very concerned about the unprofitable divisions ( A and B ) and is considering closing them for the year. Read the Requirement 1. Calculate the increase or decrease in operating income if Primero closes division A. Begin by calculating Division A's contribution margin
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