6 10 points eBook The segmented income statement for XYZ Company for the year ended December 31, 2022, follows: Sales Variable expenses Contribution margin Fixed expenses Operating income XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A $ 600,000 276,000 $ 324,000 282,000 $ 42,000 $ (14,000) Direct fixed expenses $ 300,000 150,000 $ 150,000 164,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Total Company Product A $ 74,000 $ 102,000 Product B $ 120,000 54,000 $ 66,000 46,000 $ 20,000 Product B $ 10,000 Product C $ 180,000 72,000 $ 108,000 72,000 $ 36,000 Complete this question by entering your answers in the tabs below. Product C $ 18,000 The remaining fixed expenses are considered to be corporatewide expenses that have been allocated to each product line based on sales revenue. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement.

The segmented income statement for XYZ Company for the year ended December 31, 2022, follows: The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. Ouring your investigation, you discover that certain fixed expenses are trecestie directly to each product line as Indicated here: The remaining fixed expenses are considered to be corporatewide expenses that have been alloted to each product line based on sales revenue. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. The company is concerned about the performance of product A, and you have been asked to analyze the situation ond recommend to the president whether to continue or discontinue the product. During your Investigation, your discover that certain fixed expenses are troceable directly to each product line as indicated here: The remaining foxed expenses are considered to be corporatowide expenses that have been allocated to each product line based on soles revenue. Required: a. What wai be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepase a segmented income statement for the remaining products. Allocate corporatewide fred expenses as described. c. Starting with the segmentod income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. What will be the effect of the decisian to discontinue product A on operating income? What wil be the effect of the decision to discontinue product A on operating income? Assume that product A is discontinued. Propare a segmented Income statement for the remaining products. Allocate corporatewide fixed expenses as described. - Starting with the segmented income statement, use the information you discovered during your investigation fo present a more. appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. What will be the effect of the decision to discontinue product A on operating income? Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fined expenses as described. = Starting with the segmented income statement, use the information you discovered during your imvestigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Stacting with the segmented income statement, Ute the information you discovered during your investigation to present a more appropriately designed segmented income statement