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Eter Medical Supply Company is trying to decide whether or not to continue distributing hospital succes. The following formation is available for Oster's business segments.

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Eter Medical Supply Company is trying to decide whether or not to continue distributing hospital succes. The following formation is available for Oster's business segments. Assume that all orect Fued costs could be avoided a neprestis Gropped and that the total common faced costs would remain unchanged it a segment is dropped. Hospital Retail Stores Mail Order Supplies $360,000 $440,000 $140,000 $120,000 $64,000 Sales $200,000 $240,000 $220,000 Variable Costs $90,000 $80,000 $56,000 $50,000 $20,000 $60,000 Contribution Margin Direct Fixed Costs $70,000 $70,000 $90,000 Allocated Common Fixed Costs ($14,000) Net Income If hospital supplies are dropped overall net income would O a. Increase by $14,000 O b. Increase by $6,000 . Decrease by $6,000 MacBoo tempate 1970cm 3825 Decrease by $14,000

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