Question $15$

$4$ pts

Copr. Goedl Fun Inc. has two product lines, toys and gag gifts. They are considering dropping the toys segment so they can focus on gag gifts. Below is a segmented income statement for the toy segment.

Sales

$$180,000$

Variable expenses

$96,{000}_{?}$

Contribution margin

$84,000$

Administrative expense

$87,{000}_{?}$

Toys segment income

$$(3,000)$

Sales and variable expenses are traceable directly to the toys segment. Of the administrative expenses $$27,000$ would be eliminated if the toys segment is dropped. If the toy segment were dropped, how much of the administrative expenses are relevant?

$$27,000$

$$87,000$

$$0$

$$60,000$