A study has been conducted to determine if one of the

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A study has been conducted to determine if one of the departments in Syles Company should be discontinued. The sales in this department are $80,000 per year and the variable costs are $30,000 per year. Fixed expenses charged to the department are $65,000 per year. It has been determined that $40,000 of these fixed expenses could be eliminated if the department is discontinued. What would happen to Syles Company's overall net income if this department were discontinued? Prepare a Segmented Income Statement (showing Segment Margin to support your answer.)

Reference no: EM13580811

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