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A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $106,000 of its
A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $106,000 of its fixed costs are avoidable. Segment Incono (Loss) Sales Variable costs Contribution margin Pixed costs Income (loss) $ 255,000 178,500 76,500 114,000 (37,500) (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 Compute the income increase or decrease from eliminating this segment. Segment Elimination Analyals Income Increase (Decrease) Continue Eliminate Sales $ 255,000 Variable costs 178,500 Contribution margin 76,500 Fixed costs 114,000 Income (loss) $ (37,500) Requireti A Required B>
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