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Determine the overall operating income

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Reference no: EM133111212

Question - Cullumber Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $27000 per year. The fixed costs charged to the division total $34000, but $12000 would be eliminated if the division is discontinued. If the division is eliminated, determine the overall operating income?

a) decrease by $12000.

b) increase by $27000.

c) decrease by $5000.

d) decrease by $15000.

Reference no: EM133111212

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