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Fabio Corporation is considering eliminating a department that has a contribution margin of $40,000 and $80,000 in fixed costs. Of the fixed costs, $20,000 cannot
Fabio Corporation is considering eliminating a department that has a contribution margin of $40,000 and $80,000 in fixed costs. Of the fixed costs, $20,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: a decrease of $40,000. an increase of $40,000. a decrease of $20,000. an increase of $20,000.
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