Blossom Equipment sells equipment to sports enthusiasts. Doug Blossom, the company's president, just received the following income statement reporting the results of the past year. Baseball Soccer Basketball Total Sales revenue $1,360,000 $3,900,000 $2,560,000 $7,820,000 Variable cost of goods sold 919,000 2,535,000 2,065,600 5,5 19,600 Fixed cost of goods sold 123,800 202,200 178,000 504,000 Gross prot 317,200 1,162,800 3 16,400 1,796,400 Variable operating expenses 183,800 624,000 256,000 1,063,800 Fixed operating expenses 85,200 91,000 78,900 255,100 Common xed costs 65,000 139,000 104,900 308,900 Operating income ($16,800) $308,800 ($123,400) $168,600 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. Sales Revenue to 1,360,000 to 3,900,000 Less Variable Expenses Cost of Goods Sold 919,000 2,535,000 Operating Expenses 183,800 624,000 Contribution Margin 1102800 1,911,000 Traceable Fixed Expenses Operating Expenses 85,200 91,000 Cost of Goods Sold 123,800 202,200 Segment Margin 893,800 $ 1,617,800 Common Fixed Expenses Operating Income VBasketball Total to 2,560,000 $ $7,820,000 2,065,600 5,519,600 i 256,000 1,063,800 2,321,600 6,583,400 78,900 255,100 178,000 504,000 2,064,700 5,824,300 308,900 $ 5,515,400