5. When Mr. D L. Berry, president and chief executive of Berry, Inc., first saw the segmented income statement below, he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!" Sales Variable expenses Contribution margin. Traceable fixed expenses* Common expenses, allocated. Net operating income (loss)... Product Lines Total U W $250,000 $100,000 $75,000 $75,000 119,000 37,000 35,000 47,000 131,000 63,000 40,000 28,000 98,000 31,000 37,000 30,000 32.900 18,000 10,500 4,400 100 $ 14,000 $(7,500 $(6,400) *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued