Identifying avoidable cost of a segment Safar Corporation is considering the elimination of one of


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Identifying avoidable cost of a segment Safar Corporation is considering the elimination of one of 1 answer below » Identifying avoidable cost of a segment Safar 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. View complete question » Advertising expense $ 80,000 Supervisory salaries 160,000 Allocation of companywide facility-level costs 49,000 Original cost of building 110,000 Book value of building 50,000 Identifying avoidable cost of a segment Safar 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 $ 80,000 Supervisory salaries 160,000 Allocation of companywide facility-level costs 49,000 Original cost of building 110,000 Book value of building 50,000 Market value of building 80,000 Maintenance costs on equipment 70,000 Real estate taxes on building 6,000 Required Based on this information, determine the amount of avoidable cost associated with the segment. View less » Sep 01 2015 02:12 PM

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