Premier Co. has three segments -- Park Benches, Swings, and Lighting. The Bench segment is currently producing 5,000 units annually. The units sell for $100 each. The cost of each unit is $90. The Bench segment spends $40,000 on product design each year. The segment also is allocated $100,000 of annual facility-level costs. Calculate the differential revenue if Premier Co. were to eliminate the Bench segment. Please show your work

Multiple choice question.

$100,000

$0

$500,000

$60,000