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6. Ron Jensen, the controller of Inca Industries, has prepared an analysis to help management determine whether one of Inca's departments should be eliminated. The

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6. Ron Jensen, the controller of Inca Industries, has prepared an analysis to help management determine whether one of Inca's departments should be eliminated. The department's contribution margin is $44,000. The fixed expenses charged to the department total $75,000. Of the fixed expenses, Jensen estimates that $36,000 of those expenses would be eliminated if the department were discontinued. Based on Jensen's analysis, if the department is eliminated, Inca's overall operating income would increase by $8,000 per year. decrease by $8,000 per year. decrease by $31,000 per year. decrease by $5,000 per year. 9.0 .62

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