Bryson Company's western territory's forecasted income statement for the upcoming year is as follows:

Bryson Company's management is considering dropping the western territory.If the company eliminates $496,000 of fixed costs by dropping the segment,the segment should be dropped.

Question

Bryson Company's western territory's forecasted income statement for the upcoming year is as follows:
  
Bryson Company's management is considering dropping the western territory.If the company eliminates $496,000 of fixed costs by dropping the segment,the segment should be dropped.

Quizplus · Accepted Answer

If Bryson drops the segment:
 11ea86ed_2af4_5c23_8b27_b3b089c3fcdb_TB3056_00 So it is not advantageous for the company to drop the segment.

Bryson Company's Western Territory's Forecasted Income Statement for the Upcoming