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Determine the overall operating income

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Question - Pharoah Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $30000 per year. The fixed costs charged to the division total $37000, but $18000 would be eliminated if the division is discontinued. If the division is eliminated, determine the overall operating income?

a. increase by $30000.

b. decrease by $18000.

c. decrease by $12000.

d. decrease by $11000.

Reference no: EM133068077

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