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A manufacturer is considering eliminating a segment because it shows the following $6,500 loss. All $21700 of its variable costs are avoidable, and $39,900 of
A manufacturer is considering eliminating a segment because it shows the following $6,500 loss. All $21700 of its variable costs are avoidable, and $39,900 of its fixed costs are avoidable. Sement Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (los) $ 65, 100 21,700 43,400 49,900 (6,500) (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 (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. Continue Eliminate Income Increase (Decrease) Segment Elimination Analysis $ Sales Variable costs Contribution margin Fixed costs Income (loss) 65,100 21,700 43,400 49.900 (6.500) $ Required B > (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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