A segment has the following data: Sales.........$700,000 Variable expenses...300,000 Fixed expenses.....550,000 What will be the incremental effect

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Question:

A segment has the following data:
Sales……………………………........….$700,000
Variable expenses…………………...300,000
Fixed expenses…………………….....550,000
What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments?