1When Rosana, CFO of Hydie 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 $250,000 $100,000 $75,000 $75,000

Variable expenses $119,000 $37,500 $35,000 $47,000

Contribution margin $130,500 $62,500 $40,000 $28,000

Traceable fixed expenses* $98,000 $31,000 $37,000 $30,000

Common expenses, allocated $32,900 $18,000 $10,500 $4,400

Operating income (loss) -$400 $13,500 $(7,500) $(6,400)