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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

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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. The information is avallable for the segments. A. What will be the ampact on net income if the embroidery segment is dropped? Net income 1 B. 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? C. Identify one cost that is not relevont in this analysis

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