Logan Corporation Is Considering a Eliminating a Department That Has

Multiple Choice

Logan Corporation is considering a eliminating a department that has incurred losses over the past several years.The department has a contribution margin of $32,000 per year.The fixed costs charged to the department total $37,000.$15,000 of the fixed costs is avoidable.If the department is eliminated, what would be the effect on the corporation's operating income?

A) $17,000 decrease
B) $37,000 decrease
C) $15,000 increase
D) $22,000 increase