Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in annual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
A. ($80,000)
B. $80,000
C. $10,000
D. ($10,000)
Answer: D
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What will be an ideal response?