ACC-650 TOPIC 5 Assignment Question 11 of 11 Letter -19 E Sunland Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: A B C Total Sales $2,289,000 $1,405,000 $1,801,500 $5,495,500 Variable expenses 1,692,000 601,400 1,099,000 3,392,400 Contribution margin $597,000 $803,600 $702,500 $2,103,100 Advertising expense $527,000 $428,000 $522.000 $1,477,000 Depreciation expense 15,100 10,700 21,900 47.700 Corporate expenses 93,400 80,100 106,000 279.500 Total fixed expenses $635,500 $518,800 $649,900 $1,804,200 Operating income $(3500) $284,800 $52,600 $298,900 Advertising expense - Specific to each product. Depreciation expense-Specific to each product; no other use available, no resale value.