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

question 43

Multiple Choice

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.

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