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HONGTIST Co. have segment C an

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HONGTIST Co. have segment C and segment U.

  • During the past years, 50,000 and 20, 000 were produced from segment C and U respectively.
  • Fixed cost for HONGTIST totaled 225,000 of which 90, 000 can be avoided if segment U is dropped and 45,000 can be avoided if segment C is dropped.
  • The selling price for segment C and U are P25 and P50, respectively.
  • The variable cost of segment C and U are P15 and P45, respectively.

Compute for the increase/(decrease) on HONGTIST Co. if Segment U is dropped.

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