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Trebecker Construction plans to discontinue its roofing segment which last year generated a contribution margin of $65,000 and incurred $90,000 in fixed costs. If the
Trebecker Construction plans to discontinue its roofing segment which last year generated a contribution margin of $65,000 and incurred $90,000 in fixed costs. If the segment is discontinued, half of the fixed costs will be avoided. What effect is expected to occur to the companys overall profit?
A decrease of $20,000 | ||
A decrease of $15,000 | ||
An increase of $15,000 | ||
An increase of $20,000 | ||
An increase of $30,000 |
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