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Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $36,000 and incurred $68,000 in fixed costs. Discontinuing
Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $36,000 and incurred $68,000 in fixed costs. Discontinuing the segment will allow the company to avoid 30% of the fixed costs. What effect is expected to occur to the companys overall profit? [Hint: Enter you answer as POSITIVE to denote profit, and NEGATIVE to denote as loss]
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