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A company is trying to determine if one of its departments should be discontinued. The contribution margin in the department is $80,000 per year. Fixed
A company is trying to determine if one of its departments should be discontinued. The contribution margin in the department is $80,000 per year. Fixed expenses charged to the department are $95,000 per year. It is estimated that $50,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department is discontinued, the yearly financial advantage (disadvantage) for the company would be: ($15,000) $15,000 $30,000 O($30,000)
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