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Your Company plans to discontinue a department that has a contribution margin of $25,000 and $72,000 in fixed costs. Of the fixed costs, $42,000 cannot

Your Company plans to discontinue a department that has a contribution margin of $25,000 and $72,000 in fixed costs. Of the fixed costs, $42,000 cannot be eliminated. The effect of this discontinuance on net operating income would be a(an):

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decrease by $ 5,000

increase by $ 5,000

increase by $17,000

decrease by $25,000

decrease by $17,000

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