QS 25-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $189,000 of its variable costs are avoidable, and $107,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 270,000 189,000 81,000 112,000 (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) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 270,000 189,000 81,000 112,000 $ (31,000) < Prev 3 of 4 Next >