Determine the amount of avoidable cost associated

Reference no: EM131121501

Exercise 13-16 Identifying avoidable cost of a segment

Safar Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold.

Advertising expense	$ 80,000
Supervisory salaries	160,000
Allocation of companywide facility-level costs	49,000
Original cost of building	110,000
Book value of building	50,000
Market value of building	80,000
Maintenance costs on equipment	70,000
Real estate taxes on building	6,000

Based on this information, determine the amount of avoidable cost associated with the segment.

Reference no: EM131121501

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