Cullumber 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 C Total

Sales $$2,244,000$ $$1,407,000$ $$1,813,400$ $$5,464,400$

Variable expenses $1,684,000601,0001,099,5003,384,500$

Contribution margin $$560,000$ $$806,000$ $$713,900$ $$2,079,900$

Advertising expense $$527,000$ $$430,000$ $$522,000$ $$1,479,000$

Depreciation expense $15,20010,10020,30045,600$

Corporate expenses $92,50080,200105,200277,900$

Total fixed expenses $$634,700$ $$520,300$ $$647,500$ $$1,802,500$

Operating income $$(74,700)$ $$285,700$ $$66,400$ $$277,400$

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