The Alligator segment of Carla Vista Specialty Meats is operating at a loss and has...

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Accounting

The Alligator segment of Carla Vista Specialty Meats is operating at a loss and has the following data:
Sales $576000
Variable expenses 403200
Fixed expenses 288000
If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company.
Select answer from the options below
$28800 increase.
$28800 decrease.
$345600 increase.
$144000 increase.

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