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Business, 19.08.2021 23:00 Farhan54019

Augustus Company has two divisions, Consumer and Industrial. The Consumer Division lost $20,000 and the Industrial Division had operating income of $60,000. Management has analyzed the situation and wants you to do a differential analysis to determine the increase or decrease in overall operating income based on the following: Expected decrease in revenues $220,000
Expected decrease in total variable costs $140,000
Expected decrease in fixed costs $70,000
a. $150,000 decrease to operating income
b. $80,000 increase in operating income
c. $10,000 decrease in operating income
d. $10,000 increase in operating income

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