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Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments. Assume
Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Direct fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Floral Party Supplies Costumes Decorations Sales $159,000 $110,000 $209,000 Variable costs 84,000 49,000 119,000 Contribution margin $75,000 $61,000 $90,000 Direct fixed costs 51,000 20,000 24,000 Allocated common fixed costs 30,000 24,000 31,000 Net income $(6,000) $17,000 $33,000 If costumes are dropped, what change will occur to profit? Profit will decrease by $
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