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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $31,000 and $62,000 in annual fixed costs. Of the fixed costs,
Fabri Corporation is considering eliminating a department that has an annual contribution margin of $31,000 and $62,000 in annual fixed costs. Of the fixed costs, $15,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
Multiple Choice
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($31,000)
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$31,000
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($15,500)
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$15,500
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