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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $36,000...

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Accounting

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $36,000 and $72,000 in annual fixed costs. Of the fixed costs, $18,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

($36,000)

$36,000

($18,000)

$18,000

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