Fall Corporation generates net operating income as a percent of sales of 10%, which is significantly below the industry-wide's performance of 25%. The CEO asks you to identify the reason(s) for Fall Corp.'s poor financial performance and make a recommendation to improve. The company has two major business segments--Retail and Wholesale. The below information is for their October operations. The Retail business segment had sales revenues of $ 730,000, variable expenses of $409,000, and traceable fixed expenses of $117,000. The Wholesale business segment had sales revenues of $400,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. Common fixed expenses totaled $218,000. The CEO suggests common fixed costs be allocated as follows: $122,000 to the Retail business segment and $96,000 to the Wholesale segment. Required: a. Prepare a segmented income statement using the contribution format method. b. Respond to the CEO's suggestion to allocation common fixed expenses. c. Provide an analysis of the performance of the two major business segments. d. Make a recommendation to the CEO to address Fall Corporation's poor financial performance