Dropping Or Retaining A Segment JayCo Ltd. currently manufactures three different tennis racquets: The Power, The Accelerator and The Balanced. Data on sales and expenses for last year is provided. Jason is concerned about the viability of The Balanced racquet, despite its popularity, and is wondering if JayCo Ltd. should stop making this product. The special equipment used to produce the tennis racquets has no resale value and does not wear out. Should production and sale of The Balanced be discontinued? Show calculations and Explain. \begin{tabular}{|l|l|l|l|} \cline { 2 - 4 } & Current Total & Totalif dropped & Net difference \\ \hline Sales \\ Variable MOH and selling expenses \\ Contribution margin \\ Fiked Expenses: \\ Advertising,traceableDepreciationofspecialequipmentSalariesofproduct-linemanagersAllocatedcommonfixedexpensesTotalfixedexpensesNetoperatingincome(loss) & & & \\ \hline \end{tabular} Should JayCo Ltd. discontinue The Balanced tennis racquet? Explain. Select: Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. \begin{tabular}{|l|l|l|l|l|} \cline { 2 - 5 } & Total & The Power & The Accelerator & The Balanced \\ \hline \begin{tabular}{llll|} Sales \\ Variable MOH and selling expenses \\ Contribution margin \\ Traceable Fixed Expenses: \\ Advertisisg, traceable \\ Depreciation of specialequipment \\ Salaries of product-line managers \\ Totaltraceable fixed expenses \\ Product line segment margin \\ Common fixed expenses \\ Net operating income (loss) \end{tabular} & & & & \\ \hline \end{tabular}