Fabri Corporation is considering eliminating a department that has an annual contribution margin of $30,000 and $70,000 in annual fixed costs. Of the fixed costs, $12,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
A) ($40,000)
B) $40,000
C) ($28,000)
D) $28,000

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The Answer of Fabri Corporation is considering eliminating a department that has an annual contribution margin of $30,000 and $70,000 in annual fixed costs. Of the fixed costs, $12,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
A) ($40,000)
B) $40,000
C) ($28,000)
D) $28,000

Fabri Corporation Is Considering Eliminating a Department That Has an Annual