ABC, Inc., is segmented into three divisions and the company is concerned about the performance of Division Y. During your analysis of Division Y, you learn that $42,000 of the fixed expenses relate to general corporate expenses and had been allocated equally between the three divisions.

	Total Company				Division X				Division Y				Division Z
Sales	$	200,000			$	80,000			$	50,000			$	70,000
Variable expenses		120,000				52,000				30,000				38,000
Contribution margin	$	80,000			$	28,000			$	20,000			$	32,000
Fixed expenses		60,000				20,000				22,000				18,000
Net income (loss)	$	20,000			$	8,000			$	(2,000	)		$	14,000

(a.) Calculate what the company's net income would be if Division Y were closed down. (b.) Revise the income statement presented above into a more useful segmented income statement.