Fabri Corporation Is Considering Eliminating a Department That Has an Annual

Multiple Choice

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annual fixed costs. Of the fixed costs, $25,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

A) $10,000
B) ($10,000)
C) $35,000
D) ($35,000)