Question: 50. An unprofitable segment has the following data: Sales $700,000 Variable costs 300,000 Fixed costs 550,000 What will be the incremental effect on net income
50. An unprofitable segment has the following data: Sales $700,000 Variable costs 300,000 Fixed costs 550,000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will not change and will be allocated to profitable segments? A) $400,000 increase B) $400,000 decrease C) $5,000 decrease D) Cannot be determined from the data provided
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