Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in annual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

a. $10,000

b. ($10,000)

c. $80,000

d. ($80,000)

Answer rating: 100% (QA)

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