Goodeats Company owns a single restaurant which has a bar primarily used to seat patrons while they wait on their tables. The company is considering eliminating the bar and adding more dining tables. Segmented contribution income statements are as follows and fixed costs applicable to both segments are allocated on the basis of sales. Restaurant Bar Total Sales $600,000 $200,000 $800,000 Variable costs 375,000 160,000 535,000 Direct fixed cost 50,000 15,000 65,000 Segment margin 175,000 25,000 200,000 Allocated fixed costs 112,500 37,500 150,000 Net Income $62,500 ($12,500) $50,000 If Goodeats eliminates the Bar: Answer total costs will decline by $175,000. net income will increase by $12,500. net income will decline by $25,000. total costs will decline by $212,500