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Business, 08.10.2019 21:00 caitybugking

Astudy has been conducted to determine if one of the departments in parry company should be discontinued. the contribution margin in the department is $50,000 per year. fixed expenses charged to the department are $65,000 per year. it is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued. these data indicate that if the department is discontinued, the company's overall net operating income would:

decrease by $25,000 per year
increase by $25,000 per year
decrease by $10,000 per year
increase by $10,000 per year

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