anunuonSir O decrease by $24,000 O increase by $ 7,000 O decrease by $ 7.000 O increase by$ 1,000 O decrease by $ 1.000

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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Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000 in fixed costs. Of the fixed costs, 42%6 cannot be eliminated. What is the effect of this discontinuance on net operating income?
O decrease by $24,000
increase by $ 7,000
O decrease by $ 7,000
O increase by $ 1,000
O decrease by $ 1,000
Transcribed Image Text:Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000 in fixed costs. Of the fixed costs, 42%6 cannot be eliminated. What is the effect of this discontinuance on net operating income? O decrease by $24,000 increase by $ 7,000 O decrease by $ 7,000 O increase by $ 1,000 O decrease by $ 1,000
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