Fabri Corporation is considering eliminating a department that has an annual contribution margin of $27,000 and $73,000 in annual fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
A. ($29,500)
B. $29,500
C. ($46,000)
D. $46,000
Answer: B
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