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A segment of Hazard Inc. has the following data: Sales $200,000, VC $140,000, FC $100,000. If this segment is eliminated, 50% of the FC will
A segment of Hazard Inc. has the following data: Sales $200,000, VC $140,000, FC $100,000. If this segment is eliminated, 50% of the FC will be eliminated and the rest allocated to the remaining segments. What should Hazard do?
| a. | eliminate the segment because NI will be $50,000 greater | |
| b. | keep the segment because NI will be $200,000 greater | |
| c. | keep the segment because NI will be $10,000 greater | |
| d. | eliminate the segment because NI will be $10,000 greater |
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