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21. A segment has the following data: Sales $750000 Variable expenses 325000 Fixed expenses 550000 What will be the incremental effect on net income if
21. A segment has the following data:
Sales | $750000 |
Variable expenses | 325000 |
Fixed expenses | 550000 |
What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments?
a) $5417 decrease
b) $425000 decrease
c) Cannot be determined from the data provided
d) $325000 increase
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