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A study has been conducted to determine if one of the departments in Parry Company should be discontinued. The contribution margin in the department is
A study has been conducted to determine if one of the departments in Parry Company should be discontinued. The contribution margin in the department is $ per year. Fixed expenses charged to the department are $ per year. It is estimated that $ of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department is discontinued, the company's overall net operating income would:
Oa decrease by $ per year.
Ob decrease by $ per year.
c increase by $ per year.
Od increase by $ per year.
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