Question

Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin...

Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $65,000 and incurred $70,000 in fixed costs. Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the company's overall profit?

A.An increase of $30,000

B.A decrease of $5,000

C.A decrease of $30,000

D.A decrease of $5,000

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