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Manor Company plans to discontinue a department that has a contribution margin of $25,000 and $50,000 in fixed costs. Of the fixed costs, $21,000 cannot
Manor Company plans to discontinue a department that has a contribution margin of $25,000 and $50,000 in fixed costs. Of the fixed costs, $21,000 cannot be eliminated. What would be the effect on the operating income of Manor Company of discontinuing this department? Multiple Choice An increase of $25,000. A decrease of $25,000. An increase of $4,000. A decrease of $4,000.
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