Question
5 QS 10-14 (Algo) Segment elimination LO P4 10 10 A segment of a company reports the following loss for the year. All $178,500
5 QS 10-14 (Algo) Segment elimination LO P4 10 10 A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $103,000 of its fixed costs are avoidable. Bales $255,000 Variable cost Contribution margin 110,000 (33,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Contribution margin Income poss) Continue 256.000 178.500 76.500 110,000 $ (33.500) Required B
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