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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:
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: B Total Sales $2,247,000 $1,404,000 $1,809,300 $5,460,300 Variable expenses 1,622,000 600,400 1,095,200 3,317,600 Contribution margin $625,000 $803,600 $714,100 $2,142,700 Advertising expense $517,000 $430,000 $520,000 $1,467.000 Depreciation expense 15.900 10,000 20,600 46,500 Corporate expenses 93,900 81,600 105.000 280.500 Total fixed expenses $626.800 $521.600 $645,600 $1,794,000 Operating income $(1,800) $282,000 $68,500 $348,700 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. (a) Restate the income statement in segment margin format. A B Total $ $ $ $ $
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