QS 25-13 (Algo) Segment elimination LO P4 A manufacturer is considering eliminating a segment because it shows the following $6,500 loss All $21,600 of its variable costs are avoidable, and $39700 of its fixed costs are avoidable Segment Income (105) Sales $ 64,800 Variable costs Contribution margin 43,200 Fixed costs 49,700 Income (loss) 16,500) 21,600 (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 Continue Income Increase Eliminate (Decrease) Sales $ 64,800 Variable costs 21,600 21.600