Considering eliminating a department

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Reference no: EM13789494

Weston Corporation is considering eliminating a department that has a contribution margin of $70,000 and $140,000 in fixed costs. Of the fixed costs, $100,000 cannot be avoided. The effect of eliminating this department on Weston's overall net operating income would be:

an increase of $70,000.

a decrease of $70,000.

an increase of $30,000.

a decrease of $30,000.

Reference no: EM13789494

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