30. they wait on their tables. The Mel's Diner owns a single restaurant, which has a cantina primarily used to seat patrons while company is considering eliminating the cantina. Segmented con allocated on the basis of square footage. are as follows and fixed costs applicable to both segments are Restaurant Cantina Total Sales Variable costs Direct fixed costs Allocated fixed $980,000 $209,000 $1,189,000 588,000 160,000 748,000 50,00042,000 92,000 212,500 37,500 250,000 costs Net income 129,500 30,500) 500) $99,000 What effect will occur if Mel's Diner eliminates the cantina if there is no effect on restaurant a. Net income will increase by $30,500 b. Net income will decrease to $68,500. c. Net income will decline by $7,000. d. Net income will be $129,500