Sunland Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $43000 per year. The fixed costs charged to the division total $50000, but $29000 would be eliminated if the division is discontinued. If the division is eliminated, the overall operating income will O decrease by $14000. O increase by $43000. O decrease by $22000. O decrease by $29000.

Sunland Company is deciding whether or not to discontinue one of its divisions. The division's contribution margin is $43000 per year. The fixed costs charged to the division total $50000, but $29000 would be eliminated if the division is discontinued. If the division is eliminated, the overall operating income will O decrease by $14000. O increase by $43000. O decrease by $22000. O decrease by $29000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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