Crane 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 $1,405,000 $1,807,800 $5,501,800 Variable expenses 1617.000 601.800 1,085.100 3.303.900 $803,200 $722.700 $2.197.900 $672,000 $600,000 $427,000 $520,000 $1.547.000 Contribution margin Advertising expense Depreciation expense Corporate expenses Total foed expenses 16.900 10.200 20.100 47.200 90,400 80,100 105.600 $707,300 $517,300 $645,700 276.100 $1.870,300 $327.600 Operating income $(35.300) $285.900 $77.000 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. Total 5ses Revenue 2289000 1607800 5501000 Variable expenses 1617000 1 1800 2035100 3300NCO Contribution margin 672000 09900 722700 2197900 Less Directed expenses Advertising 600000 i 427000 1 520000 1547000 i Depreciation 10200 20100 16900 47200 55100 Segment margin 66000 162000 600700 226100 Less Commoned expenses 227600 Operating profit Yourse is partially correct What would be the effect on income product A were dropped? Net income would decrease bys 272500 e Textbook and Media Attempts: 20fused Sometre Management is considering maling anew product using product As equipment. If the new product's selling price per una were $31. its variable costs were 54. 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? Unit