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school experiences school professionals school csu
Running head: DESCISION MAKING
computation of variable cost for carpeting
Computation of overall income
Tipton should go forward with its decision to close down the wallpaper operation. This is
because, by closing down the wallpaper operation, Tipton will realize a rise in its overall income.
As shown in the computation, Tipton’s overall income will rise to $170,571 from $142,000,
which is a significant 20% [(170,571-14200)/1170,571] rise.
When making the closure decision, the inventory of 23700 would be considered for sale
at a contribution...
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