Question: A segment has the following data: Sales $ 6 4 0 comma 0 0 0 $ 6 4 0 , 0 0 0 Variable costs

A segment has the following data:
Sales
$ 640 comma 000$640,000
Variable costs
346 comma 000346,000
Fixed costs
335 comma 500335,500
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.
$ 294 comma 000$294,000
decrease
B.
$ 346 comma 000$346,000
decrease
C.
$ 304 comma 500$304,500
increase
D.
$ 335 comma 500$335,500
decrease

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