A manufacturer is considering eliminating a segment because it shows the following $6,200 loss. All $20,600...

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A manufacturer is considering eliminating a segment because it shows the following $6,200 loss. All $20,600 of its variable costs are avoidable, and $37,400 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 61,800 20,600 41,200 47,400 (6,200) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? A manufacturer is considering eliminating a segment because it shows the following $6,200 loss. All $20,600 of its variable costs are avoidable, and $37,400 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 61,800 20,600 41,200 47,400 (6,200) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated?

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Analyzing the Segment Elimination a Income Increase from Elimination To calculate the income increas... View the full answer