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If the company eliminates the Western Division and the Eastern Division sales increase by 10% as a result, how much will the company’s net operating income decrease?

Answer :

Answer:

The company's net income will decrease by $88380

Explanation:

we increase sales by 10% which results in 10% increase in divisions profit of $1620

after that we set off the increase in the profits lost as it is less than it ($90,000 - $ 1620) =$88380

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