A Segment Has the Following Data $$\begin{array} { l r } \text { Sales } & \$ 630,000 \\\text { Variable costs } & 336,000 \\\text { Fixed costs } & 325,500\end{array}$$

question 174

Multiple Choice

A segment has the following data: $$\begin{array} { l r } \text { Sales } & \$ 630,000 \\\text { Variable costs } & 336,000 \\\text { Fixed costs } & 325,500\end{array}$$ What will be the incremental effect on net income if this segment is eliminated,assuming the fixed costs will be allocated to profitable segments?

• A) $304,500 increase
• B) $304,000 decrease
• C) $294,000 decrease
• D) $325,500 decrease

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