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)

Contribution Margin

The difference between sales revenue and variable costs, which contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that do not change with the level of output or activity, such as rent or salaries.

Financial Advantage

A benefit gained in terms of monetary gains or improved financial position, often resulting from investments, operational efficiency, or strategic decisions.