3. Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the company's direct fixed costs can be avoided if a segment is dropped. This information is available for the segments. Custom Embroidery Logo Apparel Sales 560.000 $250,000 Variable costs 30.000 110,000 Contribution margin 30,000 140,000 Direct fixed costs 22.000 40,000 Allocated common fixed costs 12.000 50,000 Net income 514,000) $ 50,000 A What will be the impact on net income if the embroidery segment is dropped? B. Assume that if the embroidery segment is dropped, apparel sales will increase 10%. What is the impact on the contribution margin and net income solely for the apparel? C. Identify one cost that is not relevant in this analysis