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A service company is considering dropping one of its three segments: Segment X. On the segmented contribution margin statement, Segment X shows a contribution margin

A service company is considering dropping one of its three segments: Segment X. On the segmented contribution margin statement, Segment X shows a contribution margin of $100,000 and fixed costs in the amount of $180,000. If the segment is dropped, the company would no longer incur any of the segments total fixed costs of $180,000. Based on this information, which one of the following statements is false?

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