Bobbin Toes manufactures summer sandals and casual shoes. The most recent segmented income statement for the corporation follows: Total Casual shoes Sandals $470.000 125,000 Sales Less: variable expenses Contribution margin Less: fixed expenses $2,000,000 $2,470,000 925,000 1,545,000 1,350,000 $195.000 345,000 800,000 1.200,000 900,000 $300,000 450,000 Operating income (los) ($105.000) As the controller, you are looking at the financial results and trying to determine what should be done to change thing around. You have considered several factors and the results are summarized below: - the market research team has analysis that shows if the sandal line is dropped, the sale of casual shops will drop by 8% $240,000 of the fixed costs currently being changed to the sandal line are head office allocations that will continue even if the department is shut down Required: a. a. Based on the information about, should EM koop or drop the sandal tine based on a quantitative analysis? You must support your answer with appropriate calculations b. The marketing team has come back to you with an analysis that shows if advertising expenditure was increased by $50,000, thon sandal sales would go up by 6% and casual shoes would go up by 3%. Should advertising expenditure be increased? You must support your answer with appropriate calculation