Quick Check $$

How should that portion of fixed costs that are unavoidable be handled when deciding whether to eliminate an unprofitable segment?

a$.$ They should be subtracted from the contribution margin and if that results in a loss in income, the segment should be eliminated.

b$.$ They should not be considered as they are not relevant.

c$.$ They should be allocated to other segments. If that causes a loss in another segment, that segment should be eliminated as well.

d$.$ Fixed costs are never relevant.