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 below: Custom Embroidery Service Logo Apparel Sales $ 60,000 $ 250,000 Variable Costs 30,000 110,000 Contribution Margin 30,000 140,000 Direct Fixed Costs 22,000 40,000 Allocated Common Fixed Costs 12,000 50,000 Net Income $(4,000) $ 50,000 Required: (make sure to show your work) 1. What will be the impact on net income if the embroidery segment is dropped? (15 points) 2. Assume that if the embroidery segment is dropped, apparel sales will increase 10%. What is the impact on the contribution margin and net income solely for the apparel? (15 points) 3. Identify one cost that is not relevant in this analysis and explain why it is not relevant. (15 points)