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1. Conceptual Connectoon: Eatimate the impact on profit that would result from drophing Walloon. Enter amount in full, rather than in thousands, For example, 15000

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1. Conceptual Connectoon: Eatimate the impact on profit that would result from drophing Walloon. Enter amount in full, rather than in thousands, For example, "15000" rather than "15". 2. Conceptual Connection: Should Charievooc keep on drop Walloon? 3. Conceptual Coninection: Oharlevouk's CFO decided to conduct an empirical study of previous years' advertismo cost data to hetter understand the tactors that hive caused The ernpirical study of past advertising cost represents an example of a data anahric: A sales commission of 4% of sales is paid for each of the two product lines. Derect fived selling and adnvistrative expense was estimated to be $146,000 for the poinsettia line snd $87,000 for thie fruit tree tine. Common fixed overthead for the nursery operation was estimated to be 5800,000 ; common selling and admunistrative erpense was estimated to be 5450,000 . Required: Prepare a segmented income stotement for Gorman Nursenes for the coning weag, using variable costing Note: Enter all amounts as positive numbers except operating less, if applicable. Gorman Nurseries Inc. Segmented fncome Statenent Duect fuxed expenses consist of depreciation and advertising. All depreciation on the equipment is dedicoted to the product lines. None of the equipment can be sold. Assume that each of the three products has a different marketing campayn whose advertiseng would bec eliminated if the assocated product were dropped. Required: 1. Coneentuat Connections Fstamate the impact on profot that would result from dropping Walloon. Enter amount in full, rather than in thousarids. For example, "15000" rather than "15". 2. Conceptual Connectioni Shoulu Charlevoix keep or dron Walloon? Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Gorman Nurseries Inc. Segmented Income Statement

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