1When Rosana, CFO of Hy die Inc., first evaluated the segmented income statement below, he flew into his usual rage: "When are we having losses in our product lines, I would rather eliminate them."

	Product lines
	Total	U	V	w
Sales	250000	100000	75000	75000
Variable expenses	119000	37500	35000	47000
CM	130500	62500	40000	28000
Traceable fixed expenses	98000	31000	37000	30000
Common expenses, allocated	32900	18000	10500	4400
Operating income	-400	13500	(75000)	(6400)

*These traceable expenses could be eliminated if the product lines to which they are traced were discontinued.

Required:

Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your answer. Show all the necessary calculations.