A segment of Hazard Inc. has the following data.
| Sales revenue Don't use plagiarized sources. Get Your Custom Essay on if this segment is eliminated 50 of the fixed costs will be eliminated and the rest 610689 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | $200,000 |
| Variable costs | $140,000 |
| Fixed costs | $100,000 |
If this segment is eliminated, 50% of the fixed costs will be eliminated, and the rest will be allocated to the remaining segments. What should Hazard do?
(a)Eliminate the segment; net income will be $50,000 greater.
(b)Eliminate the segment; net income will be $10,000 greater.
(c)Keep the segment; net income will be $200,000 greater.
(d)Keep the segment; net income will be $10,000 greater.
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