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Fabri Corporation is considering eliminating a department that has an annual contribution margin of $40,000...

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Accounting

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $40,000 and $80,000 in annual fixed costs. Of the fixed costs, $20,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

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What would be the financial advantage (disadvantage) from dropping product D74F?

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