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The most recent income statement for the Weakville Branch of Second Union Bank is presented below: Sales $57,000 Variable costs 31,500 Contribution margin 25,500 Avoidable
The most recent income statement for the Weakville Branch of Second Union 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) Second Union Bank is thinking about eliminating the Weakville Branch. If the branch is eliminated, Second Union Bank's operating income will ________. Select one: a. decrease $12,000 b. increase $6,000 c. increase $25,500 d. decrease $31,500
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