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Assuming Company X eliminates this division, the effect on the company's operating income would be a(n) . B. C. D. SUBMIT Question 5 Company
Assuming Company X eliminates this division, the effect on the company's operating income would be a(n) . B. C. D. SUBMIT Question 5 Company X is considering whether to discontinue a division. The division generates a total contribution margin of $66,000 per year. Of the $50,000 of fixed manufacturing overhead allocated to this division, 19,000 is unavoidable. Assuming Company X eliminates this division, the effect on the company's operating income would be a(n) A. Increase of $47,000. B. Increase of $35,000. C. Decrease of $35,000. D. Decrease of $47,000.
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