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A manufacturer is considering eliminating a segment because it shows the following...

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Accounting

A manufacturer is considering eliminating a segment because it shows the following $6,500 loss. All $21,700 of its variable costs are avoidable, and $39,900 of its fixed costs are avoidable.
Segment Income (Loss)
Sales $ 65,100
Variable costs 21,700
Contribution margin 43,400
Fixed costs 49,900
Income (loss)(6,500)
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be eliminated?
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