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A manufacturer is considering eliminating a segment because it shows the following $6,200 loss. All $20,800 of its variable costs are avoidable, and $37,800 of
A manufacturer is considering eliminating a segment because it shows the following $6,200 loss. All $20,800 of its variable costs are avoidable, and $37,800 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 62,400 20,800 41,600 47,800 (6,200) (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? A manufacturer is considering eliminating a segment because it shows the following $6,200 loss. All $20,800 of its variable costs are avoidable, and $37,800 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 62,400 20,800 41,600 47,800 (6,200) (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 $ 62,400 20,800 41,600 47,800 $ (6,200) < Required A Required B >
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