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A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,400 of its variable costs are avoidable, and $36,900 of
A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,400 of its variable costs are avoidable, and $36,900 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 61,200 20,400 40,800 46,900 (6,100) (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 $ 61,200 20,400 40,800 46,900 $ (6,100) 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? < Required A Required 8 >
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