Eliminate an Unprofitable Segment Prepare income data after eliminating Champ product line. Assume fixed costs are allocated 2/3 to Pro and 1/3 to Master. Illustration 7-17 Sales Variable costs Contribution margin Fixed costs Net income Pro $800,000 520,000 280,000 Master $300,000 210,000 90,000 Total $1,100,000 730,000 370,000 Total income is decreased by $1 Eliminate an Unprofitable Segment Prepare income data after eliminating Champ product line. Assume fixed costs are allocated 2/3 to Pro and 1/3 to Master. Illustration 7-17 Sales Variable costs Contribution margin Fixed costs Net income Pro $800,000 520,000 280,000 Master $300,000 210,000 90,000 Total $1,100,000 730,000 370,000 Total income is decreased by $1