10 5 point Kappa Company is deciding whether or not to drop one of its production departments, currently reporting a loss of $45.000. The loss consists of an $80.000 contribution margin and fixed expenses of $125,000. If the department is dropped $70,000 of the fixed expenses would be eliminated. The financial advantage disadvantage to Kappa of cropping the department is: $ 70.000 OOOO ($25.000 1$ 10,000) $ 45,000