A segment of a company reports the following loss for the year. All $140,000 of its variable
Question:
A segment of a company reports the following loss for the year. All $140,000 of its variable costs are avoidable, and $75,000 of its fixed costs are avoidable.
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be eliminated?
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a The total avoidable costs for the segment are Avoidable variable costs 14000...View the full answer
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