QUESTION 10 Kappa Company is deciding whether or not to drop one of its production departments, currently reporting a $30,000 loss. The loss consists of an $80,000 contribution margin and fixed expenses of $110,000. If the department is dropped, $75,000 of the fixed expenses would be eliminated. The financial advantage (disadvantage) to Kappa of dropping the department is: (545,000) (5 5,000) $75,000 $30,000