Manor Company Plans to Discontinue a Department That Has a Contribution

Multiple Choice

Manor Company plans to discontinue a department that has a contribution margin of £24,000 and £48,000 in fixed costs. Of the fixed costs, £21,000 cannot be eliminated. The effect of this discontinuance on Manor's net operating income would be a(an)

A) decrease of £3,000.
B) increase of £3,000.
C) decrease of £24,000.
D) increase of £24,000.