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Snappy Crackers Company plans to eliminate a branch that has a contribution margin of $ 7 0 , 0 0 0 and fixed costs of

Snappy Crackers Company plans to eliminate a branch that has a contribution margin of $70,000 and fixed costs of $95,000. Of the fixed costs, $75,000 cannot be eliminated. The effect of
eliminating this branch on net income would be a(n)
Multiple Choice
decrease of $25,000
increase of $25,000
decrease of $50,000
increase of $50,000
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