Fabri Corporation Is Considering Eliminating a Department That Has an Annual

question 223

Multiple Choice

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annual fixed costs. Of the fixed costs, $25,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

• A) $10,000
• B) ($10,000)
• C) $35,000
• D) ($35,000)

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Definitions:

Atomic Open Sentence

A sentence expressing a basic proposition that includes variables, which, when replaced by specific terms, becomes an atomic sentence.

Compound

A substance formed when two or more chemical elements are chemically bonded together.

Atomic

The smallest component of an element, characterized by a nucleus surrounded by electrons, or in logic, a statement that cannot be further divided.

Symbolize

The act of representing an object, concept, or action with a symbol or a set of symbols, especially in the context of mathematics or logic.