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Oriale George, the controler of Inca Industries, has prepared an analysis to halp managemant detarmins whather ons of Inca's departmants should be eliminated. The

 

Oriale George, the controler of Inca Industries, has prepared an analysis to halp managemant detarmins whather ons of Inca's departmants should be eliminated. The dspartment's contribution margin is $60000. The foxed cxpenses charged to the department total $93000. Of ths fixad expanses, George estimates that $45000 of those expenses would be aliminated if the desartmant were discontinusd. Basad on George's analysis, if the department is aliminated, Inca's ovarall operating income would O decrease by $12000 per year. O decreas by $33000 per year. O increase by $15000 per year. O decrease by $15000 par year.

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