10.4 Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin...

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10.4 Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $65,000 and incurred $70,000 in fixed costs. Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the company’s overall profit?

A. a decrease of $5,000 B. a decrease of $30,000 C. a decrease of $5,000 D. an increase of $30,000

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Principles Of Accounting Managerial Accounting Volume 2

ISBN: 9781947172609

1st Edition

Authors: Patty Graybeal, Mitchell Franklin, Dixon Cooper

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