Question: A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,200 of its variable costs are avoidable, and $36,500 of

A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,200 of its variable costs are avoidable, and $36,500 of its fixed costs are avoidable. Segment Income (LOS) Sales $ 60,608 Variable costs 20,200 Contribution margin 40,400 Fixed costs 46,500 Income (loss) (6,100) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Continue Eliminato Income Increase (Decrease) S 0 Segment Elimination Analysis Sales Variable costs Contribution margin Fixed costs Income (loss) 0 60.600 $ 20,200 40,400 46,500 (6.100) 0 $ GEN Required 8 > A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,200 of its variable costs are avoidable, and $36,500 of its fixed costs are avoidable. Segment Income (1.05). Sales $ 60,600 Variable costs 20,200 Contribution margin 40,400 Fixed costs 46,500 Income (loss) (6,100) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Should the segment be eliminated? Should the segment be eliminated?
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