Multiple Choice
Zandy Beverage Company 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(n)
A) decrease of £25,000.
B) increase of £25,000.
C) decrease of £30,000.
D) increase of £30,000.
Correct Answer:
Verified
Correct Answer:
Verified
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