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Fizzy Beverages Ltd plans to eliminate a branch that has a contribution margin of $50,000...

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Accounting

Fizzy Beverages Ltd plans to eliminate a branch that has a contribution margin of $50,000 and fixed costs of $75,000. Of the fixed costs, $55,000 cannot be eliminated. The effect of eliminating this branch on net income would be a

Select one:

decrease of $25,000.

increase of $25,000.

decrease of $30,000.

increase of $30,000.

Answer & Explanation Solved by verified expert
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