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A manufacturer is considering eliminating a segment because it shows the following $6,000 loss. All $20,000 of its variable costs are avoidable, and $36.000 of
A manufacturer is considering eliminating a segment because it shows the following $6,000 loss. All $20,000 of its variable costs are avoidable, and $36.000 of its fixed costs are avoidable Segment Income (Loss) Sales 5 60,000 Variable costs 20,000 Contribution margin 40,000 Fixed costs 46,000 Income (loss) (6.000) (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 Compute the income increase or decrease from eliminating this segment. Segmont Elimination Analysis. Continue Income locrease Eliminate (Decrease) Sales $ 60.000 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 Continue Eliminate Income Increase (Decrease) $ Sales Variable costs Contribution margin Fixed costs Income (loss) 60,000 20,000 40,000 46,000 (6,000) A Roguind a Required B >
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