Question: A segment has the following data: Sales $ 6 3 0 , 0 0 0 Variable costs 3 7 6 , 0 0 0 Fixed

A segment has the following data:
Sales
$630,000
Variable costs
376,000
Fixed costs
375,500
What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will be allocated to profitable segments?
Question content area bottom
Part 1
A.
$375,500
decrease
B.
$ 254,500
increase
C.
$ 254,000
decrease
D.
$376,000
decrease

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