A company's segment reports the following $125,250 loss. Its variable costs of $417,500 are all avoidable. However, only $628,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,002,000 417,500 584,500 709,750 $ (125,250) Complete this question by entering your answers in the tabs below. Required A Required B Calculate the income increase or decrease if the segment is eliminated. Enter losses and decreases as negative values. Segment Elimination Analysis Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 1,002,000 417,500 584,500 709,750 $ (125,250) Required A Required B >
A company's segment reports the following $125,250 loss. Its variable costs of $417,500 are all avoidable. However, only $628,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,002,000 417,500 584,500 709,750 $ (125,250) Complete this question by entering your answers in the tabs below. Required A Required B Calculate the income increase or decrease if the segment is eliminated. Enter losses and decreases as negative values. Segment Elimination Analysis Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 1,002,000 417,500 584,500 709,750 $ (125,250) Required A Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company's segment reports the following $125,250 loss. Its variable costs of $417,500 are all avoidable. However, only $628,000 of
its fixed costs are avoidable.
Segment Income (Loss)
Sales
Variable costs
Contribution margin
Fixed costs
Income (loss)
$ 1,002,000
417,500
584,500
709,750
$ (125,250)
Complete this question by entering your answers in the tabs below.
Required A
Required B
Calculate the income increase or decrease if the segment is eliminated. Enter losses and decreases as negative values.
Segment Elimination Analysis
Income Increase
(Decrease)
Sales
Variable costs
Contribution margin
Fixed costs
Income (loss)
Continue
Eliminate
$ 1,002,000
417,500
584,500
709,750
$
(125,250)
Required A
Required B >
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