Qs 25 14 Algo Segment Elimination Lo P4 A Segment Of A Company Reports The Following Loss For The Year All 189 000 O 1 (43.71 KiB) Viewed 10 times
QS 25-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $189,000 of its variable costs are avoidable, and $93,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 270,000 Variable costs 189,000 81,000 Contribution margin Fixed costs 101,000 Income (loss) (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 Sales $ 270,000 Variable costs 189,000 Contribution margin 81,000 Fixed costs 101,000 Income (loss) $ (20,000) < Required A Income Increase (Decrease) Required B >
Required A Required B Should the segment be eliminated? Should the segment be eliminated?
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