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. Party Floral Costumes Supplies Decorations Sales $161,000 $109,000 $210,000 Variable costs 83,000 51,000 119,000 Contribution margin $78,000 $58,000 $91,000 Direct fixed costs 50,000 19,000 26,000 Allocated common fixed costs 31,000 26,000 29,000 Net income $(3,000) $13,000 $38,000 If costumes are dropped, what change will occur to profit? Profit will decrease by $ X. Feedback Check My Work When choosing to eliminate the Costume segment, what would also be eliminated in terms of covering applicable costs for the business? Would eliminating the segment change the amount of total fixed costs? Check My Work Previous Next