Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the company's direct fixed costs can be avoided if a segment is dropped. This information is available for the segments. Total Sales Variable Costs Contribution Margin Direct Fixed Costs Allocated Fixed Costs Net Operating Income Custom Embroidery $150,000 90.000 60,000 50,000 22,000 ($ 12,000) Logo Apparel $200,000 100,000 100,000 50,000 22.000 $28,000 $350,000 190,000 160,000 100,000 44,000 $ 16,000 a. Assuming there are no other changes to the business, what will be the impact on net operating income if the custom embroidery segment is dropped? Please show your calculations. (4 points) b. If your answer to (a) is not $12,000, please explain why. (4 points)