Delta Aluminums management is considering eliminating product B, which has been showing a loss for several years. The companys annual income statement is as follows:

A	B	C	Total
Sales	$2,266,000	$1,404,000	$1,808,700	$5,478,700
Variable expenses	1,492,000	800,400	1,083,900	3,376,300
Contribution margin	$774,000	$603,600	$724,800	$2,102,400
Advertising expense	$612,000	$526,000	$521,000	$1,659,000
Depreciation expense	16,400	10,100	21,300	47,800
Corporate expenses	86,200	80,200	105,900	272,300
Total fixed expenses	$714,600	$616,300	$648,200	$1,979,100
Operating income	$59,400	$-12,700	$76,600	$123,300

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. Warning

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(a) Restate the income statement in segment margin format.

A	B	C	Total
Direct fixed expensesSegment marginDepreciationAdvertisingCommon fixed expensesOperating profitVariable expensesSalesContribution margin	$	$	$	$
Contribution marginCommon fixed expensesDirect fixed expensesSegment marginOperating profitDepreciationVariable expensesSalesAdvertising
Common fixed expensesSegment marginOperating profitSalesVariable expensesContribution marginDirect fixed expensesAdvertisingDepreciation
AddLessAdvertisingContribution marginVariable expensesSalesSegment marginDirect fixed expensesDepreciationCommon fixed expensesOperating profit
SalesVariable expensesCommon fixed expensesAdvertisingDirect fixed expensesSegment marginOperating profitContribution marginDepreciation
Segment marginContribution marginDirect fixed expensesAdvertisingDepreciationVariable expensesSalesCommon fixed expensesOperating profit
Segment marginCommon fixed expensesContribution marginSalesOperating profitVariable expensesDirect fixed expensesAdvertisingDepreciation	$	$	$
AddLessOperating profitDepreciationContribution marginAdvertisingCommon fixed expensesDirect fixed expensesSegment marginSalesVariable expenses
Common fixed expensesOperating profitSegment marginSalesDepreciationContribution marginDirect fixed expensesVariable expensesAdvertising	$