Crane Toys' management is considering eliminating product A, which has been showing a loss for seve income statement, is as follows: A B C Total Sales $2,289,000 $1,405,000 $1,807,800 $5,501,800 Variable expenses 1,617,000 601,800 1,085,100 3,303,900 Contribution margin $672,000 $803,200 $722,700 $2,197.900 Advertising expense $600,000 $427,000 $520,000 $1,547,000 Depreciation expense 16,900 10,200 20,100 47,200 Corporate expenses 90,400 80,100 105,600 276,100 Total fixed expenses $707,300 $517,300 $645.700 $1,870,300 Operating income $(35,300) $285,900 $77.000 $327.600 Advertising expense - Specific to elch product.. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. (b) What would be the effect on income if product A were dropped? Net income would increase by $ e Textbook and Media Save for Later Last saved 1 second ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $11, its variable costs were $4, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell the make the switch from product A to the new product worthwhile? Units (a) Restate the income statement in segment margin format. A B to