A segment of a company reports the following loss for the year. All $196,000 of...
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A segment of a company reports the following loss for the year. All $196,000 of its variable costs are avoidable, and $111,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs, Contribution margin Fixed costs Income (loss) $ 280,000 196,000 84,000 117,000 (33,000) (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. 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 $ Variable costs Contribution margin Fixed costs Income (loss) 280,000 196,000 84,000 117,000 (33,000) $ (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Should the segment be eliminated? Should the segment be eliminated
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