Holly's Home Goods is analyzing the profitability of three segments: furniture, decor, and kitchenware. The financials are:

Segment	Revenue	Direct Costs
Furniture	$600,000	$360,000
Decor	$150,000	$90,000
Kitchenware	$70,000	$40,000

Holly is considering converting the kitchenware area into an expanded furniture area.

Required: a. Determine the necessary increase in the furniture segment margin to maintain Holly’s Home Goods’ current income. b. Identify other considerations Holly should evaluate before deciding to eliminate the kitchenware area to expand furniture.