Department on fabios overall net operating income

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Reference no: EM13753424

Fabio Corporation is considering eliminating a department that has a contribution margin of $28,000 and $72,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

A decrease of $44,000.

B. increase of $44,000.

 d. decrease of $29,000.

e. an increase of $29,000.

Reference no: EM13753424

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