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Peru Company has three segments: Slides, Swings, and Lighting. The Slides segment is currently producing 1 0 , 0 0 0 units annually. The units

Peru Company has three segments: Slides, Swings, and Lighting. The Slides segment is currently producing 10,000 units annually. The units sell for $100 each. The cost of each unit is $90. The Slides segment spends $85,000 on product design each year. The segment also is allocated $100,000 of annual facility-level costs. Calculate the avoidable cost if Peru Company were to eliminate the Slides segment.
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$1,000,000
$900,000
$1,085,000
$985,000
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