Fabio Corporation Is Considering Eliminating a Department That Has a Contribution

question 160

Multiple Choice

Fabio Corporation is considering eliminating a department that has a contribution margin of $30,000 and $60,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

• A)a decrease of $30,000.
• B)an increase of $30,000.
• C)a decrease of $15,000.
• D)an increase of $15,000.

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Definitions:

Nutrition Counselor

This professional offers individualized nutritional advice and support to help clients achieve their specific dietary goals and maintain a healthy lifestyle.

Diet History Interview

A comprehensive assessment method used by healthcare professionals to evaluate an individual's dietary intake and habits over a certain period.

Usual Diet

The typical eating pattern or food consumption habits of an individual over time.

Nutrition Assessment

A systematic method for collecting and analyzing information to identify nutritional problems and their causes.