You are provided the following information about Fescue Corp. Evaluate the decision to eliminate one of its manufacturing segments.

	Without	With
	Disposal	Disposal
Sales	778,145	514,317
Cost of goods sold	486,240	314,366
Gross profit	291,905	199,951
Selling expense	106,424	71,696
General expense	42,118	28,339
Administrative expense	37,164	24,754
Operating income	106,199	75,162
Interest expense	87,168	11,186
Income from continuing operations	19,031	63,976
Loss from discontinued operations		37,186
Net income before tax	19,031	26,790
Income tax expense	4,758	6,698
Net income	14,273	20,093
Assets	747,625	348,226
Equity	268,589	307,385