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Atag Co. plans to discontinue a department that has a $48,000 contribution margin and $86,000 of fixed costs. Of these fixed costs, $42,000 cannot be
Atag Co. plans to discontinue a department that has a $48,000 contribution margin and $86,000 of fixed costs. Of these fixed costs, $42,000 cannot be avoided. What would be the effect of discontinuing the department on Atag's overall operating income?
a.
A decrease of $6,000.
b.
An increase of $6,000.
c.
An increase of $4,000.
d.
A decrease of $4,000
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Auditing Local Union Financial Records A Guide For Local Union Trustees
Authors: John Lund
1st Edition
0875461948, 978-0875461946
