Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of
Question:
Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $65,000 and incurred $70,000 in fixed costs. Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the company’s overall profit?
A. A decrease of $5,000
B. A decrease of $30,000
C. A decrease of $5,000
D. An increase of $30,000
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A A decrease of 5000 When Youngstown Construction plans to discontinue its roofing segment it will b...View the full answer
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Related Book For 
Principles Of Accounting Volume 2 Managerial Accounting
ISBN: 9780357364802
1st Edition
Authors: OpenStax
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