Fizzy Beverages Ltd plans to eliminate a branch that has a contribution margin of $50,000...
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Accounting
Fizzy Beverages Ltd plans to eliminate a branch that has a contribution margin of $50,000 and fixed costs of $75,000. Of the fixed costs, $55,000 cannot be eliminated. The effect of eliminating this branch on net income would be a
Select one:
decrease of $25,000.
increase of $25,000.
decrease of $30,000.
increase of $30,000.
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