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A segment has the following data:

Sales $600,000
Variable costs $320,000
Fixed costs $310,000

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) $30,000 increase

b) $310,000 decrease

c) $290,000 decrease

d) $280,000 decrease

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941803

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