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Fabio Corporation is considering eliminating a department that has a contribution margin of $29,000 and $71,000 in fixed costs. Of the fixed costs, $13,500 cannot
Fabio Corporation is considering eliminating a department that has a contribution margin of $29,000 and $71,000 in fixed costs. Of the fixed costs, $13,500 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: |
a decrease of $28,500.
a decrease of $42,000.
an increase of $28,500.
an increase of $42,000.
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