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 $2,289,000 $1,401,000 $1,807,500 $5,497,500 1,696,000 600,400 1,094,200 3,390,600 Variable expenses Contribution margin Advertising expense $593,000 $800,600 $713,300 $2,106,900 $516,000 $425,000 $521,000 $1,462.000 17,300 10,200 20.900 48,400 Depreciation expense Corporate expenses Total fixed expenses 91,000 82,000 105,200 278,200 $624,300 $517,200 $647,100 $1,788,600 Operating income $(31,300) $283,400 $66,200 $318,300 - 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. B Total 2289000 $ 1401000 $ $ 1807500 $ 5.497,500 1696000 600,400 1,094,200 3.390.600 593.000 800,600 713,300 2,106,900 516,000 425,000 521,000 1.462,000 17,300 10,200 20.900 48,400 59,700 $ 365,400 $ 171.400 596,500 278,200 i $ 318,300 e Textbook and Media Attempts: 1 of 3 used (b) - Your answer is partially correct. What would be the effect on income if product A were dropped? Net income would decrease by $ 31300 e Textbook and Media