If an unprofitable segment is eliminated it is impossible for net income to decrease. it is impossible for net income to increase. fixed expenses allocated to the eliminated segment will be eliminated. variable expenses of the eliminated segment will be eliminated.

The correct answer is variable expense will also be eliminated of the segment which got eliminated.

Explanation:

The segment in the business which is not profitable anymore, then that segment would be eliminated or removed, which will result in net income will always increase or rise. And the variable costs of that eliminated segment will be absorbed through other segments or will be eliminated.

Though the segment is removed, the fixed costs which is allocated to the segment will be covered still.

So, when the segment is eliminated, then the variable expense of that segment would be eliminated.

answer; a set of mutual funds with similar risk characteristics to your mutual fund;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.