Solved: Net income 36000 3500 if segment b is eliminated how much, Accounting Basics

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Net income 36000 3500 if segment b is eliminated how much

Question -

Segment A Segment B

Service Revenue $135,000 $55,000

Unit-level materials ($31,000) ($13,000)

Unit-level labor ($41,000) ($25,000)

Product wide S&A costs ($21,000) ($14,500)

Company-wide facility level costs ($ 6,000) ($ 6,000)

Net Income $36,000 $(3,500)

If Segment B is eliminated, how much will the company's income increase or decrease per year?

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Accounting Basics: Net income 36000 3500 if segment b is eliminated how much

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Accounting Basics: Net income 36000 3500 if segment b is eliminated how much

Reference No:- TGS02710673

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