If Goodeasts eliminates the bar, How much will net income declinne by?

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. Restaura nt Bar Total Sales $600,00 $200,0 $800,0 0 Variabl e costs 375,000 160,00 0 Direct fixed costs 50,000 15,000 65,000 Segme nt margin Allocat ed 200,00 0 175,000 25,000 150,00 12,500 37,500 costs Net Income ($12,50 $50,00 0 $62,500 0)