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QS 23-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $178,500 of its variable costs
QS 23-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $99,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 255,000 178,500 76,500 106,000 (29,500) (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. Eliminate Income Increase (Decrease) Segment Elimination Analysis Sales Variable costs Contribution margin Fixed costs Income (loss) Continue $ 255,000 178,500 76,500 106,000 $ (29,500)
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