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Please include a new contribution Format income statement! Thank you! Party Supply is trying to decide whether or not to continue its costume segment. The
Please include a new contribution Format income statement! Thank you!
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. Costumes Floral Decorations Sales Variable costs Contribution margin Direct fixed costs Allocated common fixed costs Net income $160,000 84,000 76,000 50,000 30,000 $ (4,000) Party Supplies $110,000 50,000 60,000 20,000 25,000 $ 15,000 $210,000 120,000 90,000 25,000 30,000 $ 35,000 If co imes are dropped, what change will occur to profit? Assume that the allocated common fixed costs on the costumes segment will not be eliminated, but will be equally allocated to the two remaining segments. Create a new Contribution Format Income Statement showing the changesStep by Step Solution
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