Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated.

Item

Revenue

Less: TVC

TCM

Less: FC.

Advertising

Gen. and Admin.

Totals

Facial Tissue

33000

(11.000)

22.000

Bathroom Tissue

50000

(10000)

40000

Paper Towels

25000

(12,500)

12500

Totals

108.000

(33 500)

74500

(15000)

(8000)

(7000)

(5000)

(4000)

2000

(13000)

28000

(7500)

If the Paper Towel segment is eliminated, costs specific to the segment will be affected as follows:

a.

b

The Advertising costs will be cut in half with the rest being absorbed by the other segments;

The General and Administrative costs will be unaffected.

30. Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated. II the raper lower segment is climinated, costs specific to the segment will be affected as follows: a. The Advertising costs will be cut in half with the rest being absorbed by the other segments; b. The General and Administrative costs will be unaffected