A segment of a company reports the following loss for the year. All $189,000 of...
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A segment of a company reports the following loss for the year. All $189,000 of its variable costs are avoidable, and $95,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 270,000 189,000 81,000 101,000 (20,000) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continue Eliminate Income Increase (Decrease) Sales $ $ 0 Variable costs 270,000 189,000 81,000 0 0 Contribution margin Fixed costs 101,000: (20,000) Income (loss) $ Required A Required B >
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