A segment of a company reports the following loss for the year. All $185,500 of...
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A segment of a company reports the following loss for the year. All $185,500 of its variable costs are avoidable, and $112,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 265,000 Variable costs 185,500 Contribution margin 79,500 Fixed costs 119,000 Income (loss) (39,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated?
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