Considering eliminating department-contribution margin

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Reference no: EM13792250

Fabio Corporation is considering eliminating a department that has a contribution margin of $22,000 and $78,000 in fixed costs. Of the fixed costs, $24,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

A) a decrease of $56,000.

B) an increase of $56,000.

C) a decrease of $32,000.

D) an increase of $32,000.

Reference no: EM13792250

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