Trebecker Construction Plans to Discontinue Its Roofing Segment Which Last

Multiple Choice

Trebecker Construction plans to discontinue its roofing segment which last year generated a contribution margin of $65,000 and incurred $70,000 in fixed costs.If the segment is discontinued, half of the fixed costs will be avoided.What effect is expected to occur to the company's overall profit?

A) An increase of $5,000
B) A decrease of $30,000
C) A decrease of $5,000
D) An increase of $30,000