A company's segment reports the following $124,500 loss. Its variable costs of $415,000 are all avoidable....

Transcribed Image Text:

A company's segment reports the following $124,500 loss. Its variable costs of $415,000 are all avoidable. However, only $624,000 of Its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Incone (loss) $ 996,000 415,000 581,000 705,500 5 (124,500) Complete this question by entering your answers in the tabs below. Required A Required B Calculate the income increase or decrease if the segment is eliminated. Enter losses and decreases as negative values. Segment Elimination Analysis Income Increase (Decrease) Continue Eliminate Sales S Variable costs 996,000 415.000 Contribution margin 581,000 Fixed costs 705,500 Income (loss) S (124,500) Complete this question by entering your answers in the tabs below. Required A Required B Should the company eliminate the segment? Should the company eliminate the segment? < Required A Required & A company's segment reports the following $124,500 loss. Its variable costs of $415,000 are all avoidable. However, only $624,000 of Its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Incone (loss) $ 996,000 415,000 581,000 705,500 5 (124,500) Complete this question by entering your answers in the tabs below. Required A Required B Calculate the income increase or decrease if the segment is eliminated. Enter losses and decreases as negative values. Segment Elimination Analysis Income Increase (Decrease) Continue Eliminate Sales S Variable costs 996,000 415.000 Contribution margin 581,000 Fixed costs 705,500 Income (loss) S (124,500) Complete this question by entering your answers in the tabs below. Required A Required B Should the company eliminate the segment? Should the company eliminate the segment? < Required A Required &

Answer rating: 100% (QA)

Unavoidable Fixed Cost can be computed as Total Fixed ... View the full answer