Question: A segment has the following data: Sales $780000 Variable expenses 340000 Fixed expenses 550000 What will be the incremental effect on net income if this

A segment has the following data:

Sales	$780000
Variable expenses	340000
Fixed expenses	550000

What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments?

$340000 increase

$440000 decrease

$5667 decrease

Cannot be determined from the data provided

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