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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $37,000 and $74,000 in annual fixed costs. Of the fixed costs,

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $37,000 and $74,000 in annual fixed costs. Of the fixed costs, $18,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

Multiple Choice

($37,000)

$37,000

($18,500)

$18,500

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