Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. Advertising expense Supervisory salaries Allocation of companywide facility-level costs Historical cost of building Book value of building Market value of building Maintenance costs on equipment Real estate taxes on building $ 140,000 300,000 130,000 220,000 100,000 160,000 112,000 12,000 Required Based on this information, determine the amount of avoidable cost associated with the segment. Avoidable cost

Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. Required Based on this information, determine the amount of avoidable cost associated with the segment