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5. EB8. LO 10.4 The Party Zone is trying to decide whether or not to continue its costume segment. The information shown is available for
5. EB8. LO 10.4 The Party Zone is trying to decide whether or not to continue its costume segment. The information shown is available for Party Zone's business segments. Assume that neither the Direct fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Costumes Party Supplies Floral Decorations Sales $160,000 $112,000 $215,000 Variable costs 94,000 52,000 125,000 Contribution margin 66,000 60,000 90,000 Direct fixed costs 50,000 22,000 28,000 Allocated common fixed costs 20,000 27,000 32,000 Net income $ (4,000) $ 11,000 $ 30,000 If costumes are dropped, what change will occur to profit
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