Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on...

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Accounting

Valber Company is considering eliminating its Phone division. The company allocates fixed
costs based on sales. If the Phone division is dropped, all of its variable costs are
avoidable, and $170,000 of its fixed costs are avoidable. The impact on Valber's income
from eliminating the Phone division is:
Multiple Choice
$25,000 decrease
$10,000 decrease
$170,000 decrese
$35,000 increase
$170,000 increaseValber Company is considering eliminating its Phone division. The company allocates fixed costs
based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and
$170,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone
division is:
image

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