Roger Rabbit Enterprises Is Considering Whether to Discontinue a Division

Multiple Choice

Roger Rabbit Enterprises is considering whether to discontinue a division that generates a total contribution margin of $66,000 per year. Fixed manufacturing overhead allocated to this division is $50,000, of which 19,000 is unavoidable. If Roger Rabbit Enterprises were to eliminate this division, the effect on the company's operating income would be a (n)

A) increase in total operating income of $35,000.
B) decrease in total operating income of $35,000.
C) increase in total operating income of $47,000.
D) decrease in total operating income of $47,000.