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:

Unemployment

The state of being without a paid job despite actively searching for employment.

Crime Rates

The number of crimes reported in a given area over a specified period of time, often used as a statistical measure to identify trends or patterns in criminal activity.

United States

A country located primarily in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Differential Associations Theory

A theory in criminology suggesting that individuals learn deviant behavior from those close to them who provide models of and opportunities for deviance.