RECOMMENDED!!Finlay Grace Sullivan & Company has two sales offices

  

Finlay Grace Sullivan & Company has two sales offices: one located in Portland, Maine, and one in Portsmouth, New Hampshire. Management is considering dropping the Portland Office Management is considering dropping the Portland office. The company’s records the following information:Portland PortsmouthSales $40,000 $50,000Direct Cost:Variable $15,000 $25,000Fixed $10,000 $10,000What will be the effect on income if the Portland office is eliminated and half of its fixed cost are avoided?

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