A Segment Has the Following Data

question 113

Multiple Choice

A segment has the following data:

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)$284,500 increase
• B)$386,000 decrease
• C)$264,000 decrease
• D)$365,500 decrease

---

Definitions:

Societal Environmental Cost

A cost associated with environmental degradation or improvement, borne by society as a whole due to economic activities.

Oil-Spill Clean Up

Refers to the methods and technologies used to remove or mitigate the impacts of oil spills in the environment, often involving mechanical, biological, and chemical techniques.

Product Disposal

The process of safely getting rid of excess, obsolete, or defective goods in a manner that adheres to environmental and legal standards.

Conventional Environmental Cost

Expenses related to the damage or depletion of natural resources, waste management, and environmental compliance traditionally recognized by businesses.