A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs areavoidable, and $39,000 of its fixed costs are avoidable.Segment Income (Loss)SalesVariable costsContribution marginFixed costsIncome (loss)$ 63,90021,300(a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be eliminated?42,60049,000(6,400)Complete this question by entering your answers in the tabs below.Segment Elimination AnalysisSalesVariable costsContribution marginRequired A Required BCompute the income increase or decrease from eliminating this segment.Fixed costsIncome (loss)ContinueS$63,90021,30042,60049,000(6,400)Eliminate< Required AIncome Increase(Decrease)Required B > A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs areavoidable, and $39,000 of its fixed costs are avoidable.Segment Income (Loss)SalesVariable costsContribution marginFixed costsIncome (loss)$ 63,90021,30042,60049,000(6,400)(a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be eliminated?Required A Required BComplete this question by entering your answers in the tabs below.Should the segment be eliminated?Should the segment be eliminated?< Required ARequired B >

Unavoidable fixed costs = $49,000 - $39,000 Unavoidable fixed costs = $10,000

A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs are avoidable, and $39,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 63,900 21,300 42,600 49,000 (6,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated?

A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs are avoidable, and $39,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 63,900 21,300 42,600 49,000 (6,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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