Olson Company has three departments.Data for the most recent year is presented below:
Olson Company is considering eliminating Dept.C because it is operating at a loss.
Required:
A) Compute the change in operating income if Olson Company eliminates Dept. C and does not replace it.
B) Compute the change in operating income if Olson Company eliminates Dept. C and doubles the sales of Dept. T without increasing fixed costs.
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