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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 $ 62,400 Variable costs 20,800 Contribution margin 41,600 Fixed costs 47,800 Income (loss) (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. Sales Variable costs Contribution margin Fixed costs $ Income (loss) Required B > 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 $ 62,400 Variable costs 20,800 Contribution margin 41,600 Fixed costs 47,800 Income (1055) (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. RequiredA : RequiredB Should the segment be eliminated? Should the segment be eliminated
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