Dropping a segment George??s Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (which can be avoided if the unit is eliminated) for each unit are as follows:

George, the owner, is considering converting the billiards area into an expanded bar area.Required(a) Ignoring remodeling costs, by how much will the bar segment margin have to increase for the grill??s income to be at least as high as it is now?(b) What other considerations will George want to consider before making the decision to eliminate the billiards unit to expand the bararea?

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BILLIARDS ROOM BAR RESTAURANT Revenue Variable costs $320,000 $150,000 $40,000 25,000 Attributable fixed costs 15,000 80,000