Question: Lees Corp. is deciding whether to keep or drop a small segment of its business. Key information regarding the segment includes: Contribution margin: Avoidable

Lees Corp. is deciding whether to keep or drop a small segment of its business. Key information regarding the segment includes: Contribution margin: Avoidable fixed costs: 35,000 30,000 Unavoidable fixed costs: 25,000 Given the information above, Lees should: A. Keep the segment because the contribution margin exceeds avoidable fixed costs. B. Keep the segment because the contribution margin exceeds unavoidable fixed costs. C. Drop the segment because avoidable fixed costs exceed unavoidable fixed costs. D. Drop the segment because the contribution margin is less than total fixed costs.

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