lo P ool 300,000 Gummo has three business segments and has decided to arbitrarily assign common costs to these segments based on sales revenues. The CEO is reviewing the following income statement. A B C Total Sales............... $150,00 $75,000 $75,00 $300,000 Variable $65,000 $42,000 $30,00 $143,000 Costs............ poz. 1 242.900 To 143,000 Contribution $85,000 $33,000 Margin...... Traceable Fixed |$20,000 $30,000 $15.00 |$65,000 Costs... Segment $65,000 $3,000 Margin............ Common Fixed $25,000 $12.500 $12.50 |$50,000 Costs Net Income............ $40,000 $(9,500) $39,00 $ 157,000 O $24,00 $92,000 $11,50 $42.000 By how much will total net income increase or decrease if Segment B is dropped? Total net income will decrease by $27,500 Total net income will increase by$9,500 . Total net income will decrease by $33,000 Total net income will decrease by $3,000