QS 23-13 (Algo) Segment elimination LO P4 A manufacturer is considering eliminating a segment because it shows the following $6,500 loss. All $21,500 of its variable costs are avoidable, and $39,500 of its fixed costs are avoidable. Segment Income (Lons) Sales Variable coats Contribution margin Fixed costa Income (loss) $ 64,500 21,500 43,000 49,500 (6,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income Increase (Decrease) Sales Variable costs Contribution margin Continue Eliminate $ 64,500 21,500 43,000 Check my work