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Essay Details:
Essay text:
Others are corporate overhead allocated to Data by Telephone, including some that provide income to Telephone."
"If Telephone closed Data, the unavoidable costs would continue, but it would lose the benefit of Data’s direct and indirect contributions to Telephone."
Relevant Income "68,787 " "78,435 " "82,975 "
Relevant Expenses paid by Data
Rent "8,000" "8,000" "8,000"
Custodial Services "1,240" "1,240" "1,240"
Corporate Services "3,680" "3,754" "3,773"
Telephone better off by … "81,706 " "91,429 " "95,988 "
"2. Assume Intercompany demand at 205, what level of commercial hours will breakeven?"
Fixed Costs " 211,202...
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