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Emma's Eatery is analyzing the profitability of three segments: dine-in, takeout, and delivery. The financials are:SegmentRevenueDirect...

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Accounting

Emma's Eatery is analyzing the profitability of three segments: dine-in, takeout, and delivery. The financials are:

Segment

Revenue

Direct Costs

Dine-in

$600,000

$360,000

Takeout

$200,000

$120,000

Delivery

$70,000

$40,000

Emma is considering converting the delivery area into an expanded takeout area.

Required: a. Calculate the necessary increase in the takeout segment margin to maintain Emma’s Eatery’s current income. b. Identify other considerations Emma should evaluate before deciding to eliminate the delivery area to expand takeout.

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