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Bayshore Company manufactures and sells Product K. Results for last year are as follows: Sales (10,000 units at $100 each) $1,000,000 Less expenses: Variable Cost

Bayshore Company manufactures and sells Product K. Results for last year are as follows:

Sales (10,000 units at $100 each)

$1,000,000

Less expenses:

Variable Cost

500,000

Traceable fixed Cost

365,000

Allocated fixed manufacturing overhead

160,000

Total expenses

1,025,000

Net operating loss

$(25,000)

Bayshore is reexamining all of its product lines and is trying to decide whether to discontinue Product K. Segmented Income for Product K is

Select one:

a. $25,000

b. $135,000

c. $160,000

d. $500,000

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