Fabio Corporation Is Considering Eliminating a Department That Has a Contribution

Multiple Choice

Fabio Corporation is considering eliminating a department that has a contribution margin of $30,000 and $60,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

A) a decrease of $30,000.
B) an increase of $30,000.
C) a decrease of $15,000.
D) an increase of $15,000.