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Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of fixed costs. Of these fixed costs. Of these fixed costs, $42,000 cannot be avoided. What would be the effect of this discontinuance on Georgia's overall net operating income? increase of $48,000 decrease of $48,000 increase of $5,000 decrease of $6,000

Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of fixed costs. Of these fixed costs. Of these fixed costs, $42,000 cannot be avoided. What would be the effect of this discontinuance on Georgia's overall net operating income? increase of $48,000 decrease of $48,000 increase of $5,000 decrease of $6,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 12MC: Youngstown Construction plans to discontinue its rooting segment. Last year, this segment generated...
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Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of fixed costs. Of these fixed costs. Of these fixed costs, $42,000 cannot be avoided. What would be the effect of this discontinuance on Georgia's overall net operating income?

increase of $48,000

decrease of $48,000

increase of $5,000

decrease of $6,000

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