A segment has the following data:

Sales	$800000
Variable expenses	350000
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?

$450000 decrease

Cannot be determined from the data provided

$350000 increase

$5833 decrease

The last step in determining the material loading charge percentage is to

divide material charges by the total estimated costs of parts and materials.

add a desired profit margin on the materials themselves.

estimate annual costs for purchasing, receiving, and storing materials.

estimate the total cost of parts and materials.