The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:

Contribution margin	$	200,000
Fixed expenses		500,000
Net operating loss	$	(300,000	)

If the Children's Division is eliminated, $170,000 of the above-fixed expenses could be avoided. The annual financial advantage (disadvantage) for the company of eliminating this division should be:

a. ($300,000)

b. $30,000

c. ($30,000)

d. $300,000

Answer rating: 100% (QA)

The annual financial advantage disadv... View the full answer