Wildhorse Corporation is considering a eliminating a department that has incurred losses over the past several years. The department has a contribution margin of $46000 per year. The fixed costs charged to the department total $49000. $30000 of the fixed costs is avoidable. If the department is eliminated, what would be the effect on the corporation's operating income? O $49000 decrease O $30000 increase O $16000 decrease O $19000 increase Save for Later Attempts: 0 of 1 used Submit Answer

Wildhorse Corporation is considering a eliminating a department that has incurred losses over the past several years. The department has a contribution margin of $46000 per year. The fixed costs charged to the department total $49000.$30000 of the fixed costs is avoidable. If the department is eliminated, what would be the effect on the corporation's operating income? $49000 decrease $30000 increase $16000 decrease $19000 increase