Sophia's Salon analyzes profitability of three segments: haircuts, coloring, and spa treatments. Revenues and direct costs (variable plus fixed costs) for each segment are as follows:

Segment	Revenue	Direct Costs
Haircuts	$450,000	$250,000
Coloring	$200,000	$120,000
Spa Treatments	$80,000	$50,000

Sophia, the owner, is considering converting the spa area into an expanded hair coloring area.

Required: a. Based on segment margin analysis, by how much will the coloring segment margin have to increase for Sophia's Salon’s income to be at least as high as it is now? b. What other considerations will Sophia want to consider before making the decision to eliminate spa treatments to expand the coloring area?