Brigg Enterprise is considering closing down its Austrian location. This location presently has a contribution margin of $1,000,000. Overhead allocated to it is $2,500,000, of which $250,000 cannot be eliminated. If this location were to discontinue operations, by what amount would Brigg's pre-tax income increase? options are: $250,000. $1,000,000. $1,250,000. $1,500,000.
Brigg Enterprise is considering closing down its Austrian location. This location presently has a contribution margin of $1,000,000. Overhead allocated to it is $2,500,000, of which $250,000 cannot be eliminated. If this location were to discontinue operations, by what amount would Brigg's pre-tax income increase? options are: $250,000. $1,000,000. $1,250,000. $1,500,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Brigg Enterprise is considering closing down its Austrian location. This location presently has a contribution margin of $1,000,000.
options are:
- $250,000.
- $1,000,000.
- $1,250,000.
- $1,500,000.
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