Fabri Corporation is considering eliminating a department that has an annual contribution margin of $28,000 and $72,000 in annual fixed costs. Of the fixed costs, $15,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice O ($44,000) O $44,000 O ($29,000) O $29,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $28,000 and $72,000 in annual fixed
costs. Of the fixed costs, $15,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this
department would be:
Multiple Choice
O ($44,000)
O
$44,000
O ($29,000)
O
$29,000
Transcribed Image Text:Fabri Corporation is considering eliminating a department that has an annual contribution margin of $28,000 and $72,000 in annual fixed costs. Of the fixed costs, $15,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice O ($44,000) O $44,000 O ($29,000) O $29,000
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