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Shows, Inc. is considering eliminating a department that reports a contribution margin of $165000 and fixed costs of $200000. Only $120000 of the fixed costs
Shows, Inc. is considering eliminating a department that reports a contribution margin of $165000 and fixed costs of $200000. Only $120000 of the fixed costs are avoidable.
The annual financial advantage (disadvantage) for Shows of eliminating this department is:
Multiple Choice
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$85000
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$45000
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$35000
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$(45000)
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