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Fabio Corporation is considering eliminating a department that has a contribution margin of $28,000 and $72,000 in fixed costs. Of the fixed costs, $15,000 cannot
| Fabio Corporation is considering eliminating a department that has a contribution margin of $28,000 and $72,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: |
| a decrease of $44,000. | |
| an increase of $44,000. | |
| a decrease of $29,000. | |
| an increase of $29,000.
|
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