Astudy has been conducted to determine if one of the departments in parry company should be discontinued. the contribution margin in the department is $50,000 per year. fixed expenses charged to the department are $65,000 per year. it is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued. these data indicate that if the department is discontinued, the company's overall net operating income would:

decrease by $25,000 per year
increase by $25,000 per year
decrease by $10,000 per year
increase by $10,000 per year

The correct answer is increases by $10,000 per year

Explanation:

Given:

contribution margin in the department= $50,000 per year

Fixed expenses charged to the department = $65,000 per year

Now,

Current net income = Contribution - Fixed expenses

or

Current net income = $50000 - $65000 = -$15000  (negative sign depicts loss)

Also,

Fixed cost = $65000 - $40000 = $25,000

Thus,  

If this department is discontinued, the loss of $15000 would be eliminated.

but the fixed cost will be there  

The net operating income would decrease by

= $25000 - $15000

= $10,000

Hence, the correct answer is increases by $10,000 per year

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

answer may be d i think