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Mobb Company plans to discontinue a division that generates a total contribution margin of $20,000 per year. Fixed overhead associated with this division is
Mobb Company plans to discontinue a division that generates a total contribution margin of $20,000 per year. Fixed overhead associated with this division is $50,000, of which $10,000 cannot be eliminated. If the division is discontinued, how would Mobb's operating income be affected? Increase by $25,000 Decrease by $10,000 Increase by $20.000 Have no effect
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