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A segment of Hazard Inc. has the following data. Sales $200,000 Variable expense $140,000 Fixed expenses $100,000 If this segment is eliminated, what will be
A segment of Hazard Inc. has the following data.
Sales $200,000
Variable expense $140,000
Fixed expenses $100,000
If this segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company.
a. $120,000 increase.
b. $10,000 decrease.
c. $50,000 increase.
d. $10,000 increase.Step by Step Solution
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