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(CPA) Gata Co. plans to discontinue a division with a $48,000 contribution margin, and allocated fixed costs of $96,000, of which $42,000 cannot be eliminated.

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(CPA) Gata Co. plans to discontinue a division with a $48,000 contribution margin, and allocated fixed costs of $96,000, of which $42,000 cannot be eliminated. What is the effect on Gata's operating income of discontinuing this division? a. Increase of $48,000 b. Decrease of $48,000 c. Increase of $6,000 d. Decrease of $6,000

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