E. Effect of Reallocating Costs The following segmented annual income statement is for Office Express Computers Furniture Supplies Total Sales Variable costs Contribution margin Direct fixed costs Fixed overhead costs Profit (loss) 1,125,000 1,600,000 400,000 3,125,000 820,000 195,000 1,515,000 625,000 780,000 205,000 1,610,000 650,000 480,000 105,000 1,235,000 300,000 75,000 500,000 108,000 153,600 38,400 61,600 (133,000)146,400 Manag ement is concerned about the nificant losses associated with the com puter roduct line and would like to discontinue this product line Fixed overhead costs are allocated to product ines based on sales If the computers product line is eliminated: o All sales, variable costs, and direct fixed costs for the computers product line will be eliminated o All fixed overhead costs continue and are reallocated to the remaining roduct lines Rewrite the segmented income statement showing what it looks like if management eliminates the computers product line