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t29 Wallen Corporation is considering eliminating a department that has an annual contribution margin of...

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Accounting

t29

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in annual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

Multiple Choice

  • $10,000

  • ($10,000)

  • $80,000

  • ($80,000)

Answer & Explanation Solved by verified expert
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