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A business segment has the following data: Sales Revenue $120,000 Cost of Goods Sold (expense) 130,000 Sales and Admin expense 60,000 Cost of Goods Sold
A business segment has the following data:
Sales Revenue $120,000
Cost of Goods Sold (expense) 130,000
Sales and Admin expense 60,000
Cost of Goods Sold is 22% fixed cost, and variable Sales and Admin expense is 15% of total Sales and Admin expense. Calculate the increase or decrease in total net income if this business segment is discontinued, assuming fixed costs are unaffected by the decision.
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