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Unformatted text preview: variable costs would increase by 35%. Should the fare decrease be adopted? No, I do not think that the fare decrease should be adopted. The variable amount increase does not favor them with only a 10% decrease and 100 additional fares. Ch. 6 – Exercises E6-7 Determine whether each of the three joint products should be sold as is, or processed further. SARCO - Sell as is. Sell as is: $200,000 Process further: $300,000 - $120,000 = $180,000 Incremental loss: $20,000 BARCO - Process further. Sell as is: $300,000 Process further: $400,000 - $89,000 = $311,000 Incremental profit: $11,000 LARCO - Process further. Sell as is: $400,000 Process further: $800,000 - $250,000 = $550,000 Incremental profit: $150,000 Ch. 6 – Exercises E6-10 Is Maggie right about eliminating the Erie Division? Prepare a schedule to support your answer. I do not see how eliminating 100,00...
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.
- Spring '12