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The most recent income statement for the Midwest Branch of Third Financial Bank is presented below: Sales $57,000 Variable costs 31,500 Contribution margin 25,500 Avoidable
The most recent income statement for the Midwest Branch of Third Financial Bank is presented below:
Sales $57,000
Variable costs 31,500
Contribution margin 25,500
Avoidable fixed costs 13,500
Unavoidable fixed costs 18,000
Operating loss $(6,000)
Third Financial Bank is thinking about eliminating the Midwest Branch. If the branch is eliminated, Third Financial Bank's operating income will ________.
A) increase by $6,000
B) increase by $13,500
C) decrease by $12,000
D) decrease by $25,500
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