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A manufacturer is considering eliminating a segment because it shows the following $6,000 loss. All $20,100 of its variable costs are avoidable, and $36,200
A manufacturer is considering eliminating a segment because it shows the following $6,000 loss. All $20,100 of its variable costs are avoidable, and $36,200 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 60,300 20,100 40,200 46,200 (6,000) (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 Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 60,300 20,100 40,200 46,200 $ (6,000) A manufacturer is considering eliminating a segment because it shows the following $6,000 loss. All $20,100 of its variable costs are avoidable, and $36,200 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 60,300 20,100 40,200 46,200 (6,000) (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 Should the segment be eliminated? Should the segment be eliminated?
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