Sales $600,000

Variable costs 320,000

Fixed costs 310,000

What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will be allocated to profitable segments?

A)

$30,000 increase

B)

$310,000 decrease

C)

$280,000 decrease

D)

$290,000 decrease

[[selectone]]

a. $280,000 decrease

b. $290,000 decrease

c. $310,000 decrease

d. $30,000 increase