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Fabio Corporation is considering eliminating a department that has a contribution margin of $21,000 and $79,000 in fixed costs. Of the fixed costs, $25,500 cannot
Fabio Corporation is considering eliminating a department that has a contribution margin of $21,000 and $79,000 in fixed costs. Of the fixed costs, $25,500 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: a decrease of $58,000. an increase of $58,000. an increase of $32,500. a decrease of $32,500.
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