Question
Fabio Corporation is considering eliminating a department that has a contribution margin of $39,000 and $78,000 in fixed costs. Of the fixed costs, $19,500 cannot
Fabio Corporation is considering eliminating a department that has a contribution margin of $39,000 and $78,000 in fixed costs. Of the fixed costs, $19,500 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:
a decrease of $39,000.
an increase of $39,000.
a decrease of $19,500.
an increase of $19,500.
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A Guide To Effective Internal Management System Audits Implementing Internal Audits As A Risk Management Tool
Authors: IT Governance Publishing
1st Edition
1849285594, 978-1849285599
