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A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,300 of its variable costs are avoidable, and $36,700
A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,300 of its variable costs are avoidable, and $36,700 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 60,900 20,300 40,600 46,700 (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 $ 60,900 20,300 40,600 46,700 $ (6,100)
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