1. Should Phillip Limited eliminate one or both of the unprofitable segments?

2. Compare the total income for all four segements with the total income if segment Two is eliminated.

One Two For the first quarter of 2021. Phillips Limited has four operating segments, The results are as follows: The total income from operations is $213,000 SEGMENTS (000 of dollars) Three Four Sales $ 250 $ 200.0 $ 500 $ 450.0 Variable Costs Cost of Goods Sold 140 172.8 240 187.5 Selling & Administrative 30 350 30 300 Contribution Margin 80 (8.8) 230 2325 Fbed Costs Cost of Goods Sold 60 19.2 60 62.5 Selling & Administrative 240 30 200 Net Income 5.(25) $(520) 5.140 $ 1500 If a segment is discontinued, about 50% of the foued costs and expenses for that segment would be saved Top management is considering the discontinuation of one or both of the unprofitable segments. Most of the managers agree that both segments should be discontinued