Question: 21. A segment has the following data: Sales $750000 Variable expenses 325000 Fixed expenses 550000 What will be the incremental effect on net income if

21. A segment has the following data:

Sales	$750000
Variable expenses	325000
Fixed expenses	550000

What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments?

a) $5417 decrease

b) $425000 decrease

c) Cannot be determined from the data provided

d) $325000 increase

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