Fabio Corporation is considering eliminating a department that has a contribution margin of $37,000 and $74,000 in fixed costs. Of the fixed costs, $18,500 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

a decrease of $37,000.

an increase of $37,000.

a decrease of $18,500.

an increase of $18,500.

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