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QS 25-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $182,000 of its variable
QS 25-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $182,000 of its variable costs are avoidable, and $103,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $260,000 Variable costs 182,000 Contribution margin 78,000 Fixed costs 109,000 Income (loss) (31,000) (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) Continue Eliminate Sales $ 260,000 Variable costs 182,000 Contribution margin 78,000 Fixed costs 109,000 Income (loss) $ (31,000)
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