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S 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

S 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 $93,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 270,000 189,000 81,000 101,000 (20,000) (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 Continue Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income Increase (Decrease) Eliminate Sales $ 270,000 Variable costs 189,000 Contribution margin 81,000 Fixed costs 101,000 Income (loss) $ (20,000) < Required A Required B > Required A Required B Should the segment be eliminated? Should the segment be eliminated

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