A Segment Has the Following Data $$\begin{array} { l r } \text { Sales } & \$ 350,000 \\\text { Variable expenses } & 150,000 \\\text { Fixed expenses } & 285,000\end{array}$$

A segment has the following data: $$\begin{array} { l r } \text { Sales } & \$ 350,000 \\\text { Variable expenses } & 150,000 \\\text { Fixed expenses } & 285,000\end{array}$$ What will be the incremental effect on net income if this segment is eliminated assuming the fixed expenses will be allocated to profitable segments?

A) $200000 increase
B) $200000 decrease
C) $275000 decrease
D) Cannot be determined from the data provided.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free