5. Differential Analysis a. The following is a performance breakdown of Hillhole Landscaping Company: GEOGRAPHIC SEGMENT Texas Louisiana TOTAL $250,000 $1,200,000 350,000 150,000 Sales Variable Costs Cont. Margin Fixed Costs Salaries Advertising Administrative Depreciation R&D Other $800,000 $2,250,000 (850,000) (650,000 200,000 (1.700.000) 1.700,000 150,000 60,000 560,000 80,000 5,000 2,000 2,000 5,000 2,000 50,000 2,000 3,000 4,000 2,000 1,000 280,000 27,000 8,000 20,000 3,000 6,000 5,000 12,000 12,000 9,000 6,000 Total Fixed Costs (190,000) 96,000)(62, 348,000 Net Income 4 Hillhole is considering eliminating the Arkansas segment. If Arkansas is eliminated, half the Salaries and all costs from Advertising and Other will not have to be paid. Administrative, Depreciation, and R&D will still have to be covered by the remaining segments REQUIRED: What will be the NET EFFECT on Net Income if the Arkansas segment is eliminated? (Ex.: SXXX decrease or SYYY increase)