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Carla Vista Company is deciding whether or not to discontinue one of its divisions. The divisions contribution margin is $44000 per year. The fixed costs

Carla Vista Company is deciding whether or not to discontinue one of its divisions. The divisions contribution margin is $44000 per year. The fixed costs charged to the division total $51000, but $32000 would be eliminated if the division is discontinued. If the division is eliminated, the overall operating income will

increase by $44000.

decrease by $32000.

decrease by $25000.

decrease by $12000.

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