Manor Homes plans to discontinue a segment which last year generated a contribution margin of $65,000 and incurred $40,000 in fixed costs. If the segment is discontinued, half of the fixed costs will not be avoided. If Manor Homes decides to discontinue this segment, what will be the overall effect on profits?

Answer rating: 100% (QA)

A decrease of 45000 Calculations Result of elimi... View the full answer