A segment manager is arguing that the segment should be retained (not dropped) despite showing a negative NOI (net operating income) Which of the following points would help the managers argument?

1.The majority of allocated (common) fixed costs assigned to the segment are unfavorable and the allocated fixed costs are much higher than the operating loss

2.The traceable fixed costs for the segment are all avoidable

3.Higher valuable costs made the unit CM for segment products much lower than in previous periods

4.The segment faced increased competition from other companies, and several new competitive products are expected to debut next period.

5.The segment represents most consumers first purchase with the company could lead to brand loyalty and future company sales