Milli Company plans to discontinue a division that generates a total contribution margin of $20,000 per year. Fixed overhead associated with this division is $50,000, of which $5,000 cannot be eliminated. The effect of this discontinuance on Milli's operating income would be an increase of:
A) $5,000.
B) $20,000.
C) $25,000.
D) $30,000.

Answer rating: 100% (QA)

answer c Fixed overhead savings if di... View the full answer