A segment of Hazard Inc. has the following data.

Sales $200,000 Variable costs $140,000 Fixed costs $100,000 If this segment is eliminated, 50% of the fixed costs will be eliminated, and the rest will be allocated to the remaining segments. What should Hazard do?

(a) Eliminate the segment; net income will be

$50,000 greater.

(b) Eliminate the segment; net income will be

$10,000 greater.

(c) Keep the segment; net income will be $200,000 greater.

(d) Keep the segment; net income will be $10,000 greater.