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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $38,000 and $76,000 in annual fixed costs. Of the fixed costs,
Fabri Corporation is considering eliminating a department that has an annual contribution margin of $38,000 and $76,000 in annual fixed costs. Of the fixed costs, $19,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice $38,000 (519,000) o o 0 (538,000) Multiple Choice 0 $38,000 0 ($19,000) 0 ($38,000) 0 $19,000
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