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Pharoah Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $30000 per year. The fixed costs charged

Pharoah Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $30000 per year. The fixed costs charged to the division total $37000, but $18000 would be eliminated if the division is discontinued. If the division is eliminated, the overall operating income will

increase by $30000.

decrease by $18000.

decrease by $12000.

decrease by $11000.

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