Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. fabio corporation is considering eliminating a dep

Fabio Corporation is considering eliminating a department that has a contribution...

60.1K

Verified Solution

Question

Accounting

Fabio Corporation is considering eliminating a department that has a contribution margin of $36,000 and $72,000 in fixed costs. Of the fixed costs, $18,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

a decrease of $36,000.

an increase of $36,000.

a decrease of $18,000.

an increase of $18,000.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Would we expect that the co-polymer produced by anionic polymerization of butadiene and styrene to be...

Chemistry
Q

Charge is added to a spherical conductor of radius 20.0 cm. (a) If the maximum electrical...

Physics
Q

What happened to Esperanza s money orders What would you have done in the

Biology
Q

Ques 5 A constant electromotive force E volts is applied to a circuit containing a...

Physics
Q

If 15% of adults in a certain country work from home what is the probability...

Basic Math
Q

A bathtub contains 120 gallons of water When the drain plug is pulled the tub...

Algebra
Q

Find the unknown angles in triangle ABC for each triangle that exists B 155 9...

Algebra
Q

Wildhorse Company manufactures bowling balls through two processes: Molding and Packaging. In the...

Accounting
Q

Trees Forever is a new business that specializes in planting trees and shrubs for homeowners....

Accounting
Q

Assume that Larry's marginal tax rate is 25%. If corporate bonds pay 7% interest, what...

Accounting
Q

Which of the following statements is NOT true? Select one: a....

Accounting
Q

-> Moving to another question will save this response IT Question uestion 13 3 points...

Finance