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. $35,000
C. ($10,000)
D. ($35,000)
Answer: A
Business
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