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RED SAGSkills
medium10 pts · first answer countsfinancial-modellingcost-modellingdecision-analysis

Close the loss-making branch

A branch shows a ₹5 lakh loss after ₹20 lakh of allocated head office cost. Its own contribution after direct costs is +₹15 lakh, and the head office cost will not fall if it closes. What happens to company profit if it closes?

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