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The most recent income statement for the South Branch of Harbor Bank is presented below: Sales $57,000 Variable costs 31,500 Avoidable fixed costs 13,500 Unavoidable

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The most recent income statement for the South Branch of Harbor Bank is presented below: Sales $57,000 Variable costs 31,500 Avoidable fixed costs 13,500 Unavoidable fixed costs 20,000 Operating loss $(8,000) Harbor Bank is thinking about eliminating the South Branch. If the branch is eliminated, Harbor Bank's operating income will decrease by $12,000 decrease by $31,500 increase by $8,000 increase by $25,500

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