Transcribed Image Text: Hebrew Co. have segment A and segment B. During the past years, 50,000 and 20,000 were produced from segment A and B respectively. Fixed cost for Hebrew

Transcribed Image Text: Hebrew Co. have segment A and segment B. During the past years, 50,000 and 20,000 were produced
from segment A and B respectively. Fixed cost for Hebrew totaled 225,000 of which 90,000 can be
avoided if segment B is dropped and 45,000 can be avoided if segment A is dropped. The selling price
for segment A and B are 25 and 50, respectively. The variable cost of segment A and B are 15 and 45,
respectively.
REQUIREMENTS:
1. Compute the segment margin of segment A.
2. Compute for the increase/(decrease) on Hebrew Co. if segment B is dropped.