Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $390,000, variable expenses of $210,000, and traceable fixed expenses of $46,000.
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The Task Company is to begin operations in April. It has budgeted April sales of $30,000, May sales of $34,000, June sales of $40,000, July sales of $42,000, and August sales of $38,000.
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