Evaluate the following segment income statements for the various divisions at SPM Co$.$

TotalSegment ASegment BSegment CSales$$900,000$$$400,000$$$300,000$$$200,000-$Var. Costs$(500,000)(250,000)(190,000)(60,000)=$Contr. Margin$400,000150,000110,000140,000-$Traceable Fixed Costs$(310,000)(160,000)(50,000)(100,000)=$Segment Profit Margin$90,000(10,000)60,00040,000-$Common Fixed Costs$(80,000)(10,000)(20,000)(50,000)$Net Oper. Income$10,000(20,000)40,000(10,000)$

Which of the above segments $($A$,$ B$,$ C$)$ should be discontinued?$$ Hint:$$ remember the rule about common fixed costs...

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A

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A$,$ B$,$ and C

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B

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A and C

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B and C

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C

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No answer text provided.

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A and B