A manufacturer is considering eliminating a segment because it shows the following...
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Accounting
A manufacturer is considering eliminating a segment because it shows the following $ loss. All $ of its variable costs are avoidable, and $ of its fixed costs are avoidable.
Segment Income Loss
Sales $
Variable costs
Contribution margin
Fixed costs
Income loss
a Compute the income increase or decrease from eliminating this segment.
b Should the segment be eliminated?
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