Fixed costs charged to the division total

Reference no: EM131065871

Brandi company is deciding wether or not to discontinue one of its divisions. The division's contribution margin is $27,000 per year. The fixed costs charged to the division total $32,000, but $15,000 would be eliminated if the divsion is discontinued. If the division is eliminated, the overall operating income would a. Decrease by $9,000 b. Decrease by $12,000 c. Decrease by $15,000 d. Increase by $27,000

Reference no: EM131065871

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