Question: Please help with the segment elimination for the following problem, & please show and explain caluclations so I may understand more fully. Thanks in advance.
A manufacturer is considering eliminating a segment because it shows the following $6.000 loss. All $20,100 of its variable costs are avoidable, and $36,200 of its fixed costs are avoidable. (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from eliminating this segmen
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