Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A segment of a company reports the following loss for the year. All $185,500 of its variable costs are avoidable, and $105,000 of its fixed

A segment of a company reports the following loss for the year. All $185,500 of its variable costs are avoidable, and $105,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 265,000 185,500 79,500 113,000 (33,500) (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 Continue Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income Increase (Decrease) Eliminate Sales $ 265,000 Variable costs 185,500 Contribution margin 79,500 Fixed costs 113,000 Income (loss) $ (33,500)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

When is it appropriate to use a root cause analysis

Answered: 1 week ago