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Business, 02.04.2020 19:49 Maddenmobile7625

Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold.

Advertising expense $ 96,000
Supervisory salaries 171,000
Allocation of companywide facility-level costs 68,000
Original cost of building 110,000
Book value of building 53,000
Market value of building 98,000
Maintenance costs on equipment 83,000
Real estate taxes on building 9,000

Based on this information, determine the amount of avoidable cost associated with the segment.

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Lake Corporation is considering the elimination of one of its segments. The segment incurs the follo...

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