Helens Hen House is a wholesaler of chickens to farmers across the country. Helen sells three types of chickens to her customers: Black, Brown, and White chickens. Below is a traditional departmental income statement for the quarter ended 10/31/2022.

	Black	Brown	White
Sales Revenue	$30,000	$50,000	$25,000
(Cost of Goods Sold)	6,000)	(40,000)	(20,000)
Gross Profit	24,000	10,000	5,000
(Operating Expenses)	(8,500)	(5,500)	(8,000)
Operating Income	15,500	4,500	(3,000)

45% of the cost of goods sold for reach product line is variable. The remaining cost of goods sold consists of traceable fixed costs. Operating expenses include $11,500 of common fixed costs that have been arbitrarily allocated to the various product lines as follows: $3,000 to Black Chickens, $4,500 to Brown Chickens, and $4,000 to White Chickens. The remaining operating expenses consist of variable costs.

Which of the following statements is correct with regard to the above information?

A.

Operating income using the segmented margin income statement would be $28,500.

B.

Total traceable costs for the Black Chickens line are $14,500.

C.

The companys common fixed costs would decrease by $3,000 if the Black Chickens line was discontinued.

D.

The contribution margin percentage for the Brown Chickens line is 62%.

E.

If the White Chicken line was dropped the companys operating income would increase by $3,000.