Question
The Alligator segment of Louisiana Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $600,000 420,000
The Alligator segment of Louisiana Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $600,000 420,000 300,000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $150,000 increase. O $30,000 increase. O$360,000 increase. O$30,000 decrease.
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