Blossom 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 Total Sales $2,237,000 $1,410,000 $1,818,500 $5,465,500 Variable expenses Contribution margin 1,672,000 $565,000 601,500 1,092,800 3,366,300 $608,500 $725,700 $2,099,200 Advertising expense $502,000 $427,000 $520,000 $1,449,000 Depreciation expense 17,900 10,900 21,600 50,400 Corporate expenses 90,500 82,700 106,600 279,800 Total fixed expenses $610,400 $520,600 $648,200 $1,779,200 Operating income $(45,400) $287,900 $77,500 $320,000 Advertising expense-Specific to each product. Depreciation expense-Specific to each product; no other use available, no resale value. Corporate expenses-Allocated based on number of employees. (a) Restate the income statement in segment margin format. $ $ (b) (c) eTextbook and Media Save for Later $ What would be the effect on income if product Aware dropped? Net income would eTextbook and Media Save for Later by $ Attempts: 0 of 3 used Submit Answer Attempts: 0 of 3 used Submit Answer Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $10, its variable costs were $5, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile? Units eTextbook and Medla Save for Later Attempts: 0 of 3 used Submit