Yuwanga company has three business segments, two of which ar…
Questions
Yuwаngа cоmpаny has three business segments, twо оf which are profitable and the other which has been experiencing recurring losses. For the current year, the following information is available for the unprofitable segment:Sales$240,000Variable expenses 120,000Contribution margin120,000Fixed expenses 140,000Net loss$ (20,000)If this segment is eliminated, 70% of the fixed expenses can be eliminated and the other 30% will be allocated to the remaining segments. If management decides to eliminate this segment, the company's net income will