Cliff Corporation is considering eliminating a department that has annual sales of $86,000, variable costs of $40,000, and annual fixed costs of $60,000. Of the fixed costs, $10,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be _______.

Multiple Choice

• ($36,000)

• $4,000

• ($4,000)

• $36,000