how do i solve for a and b?
uta Review View Developer Help Calibri X Cut [b Copy Format Painter 11 AA== 2 Wrap Text OLA. Merge & Center Gene BIU- Clipboard Font Alignment 19 B D E F G H 3 Trent Weaver is reviewing the latest financial statements of BWB Products 4 For the second year in a row, the Collectibles Division is showing a negative 5. segment margin. Trent believes it may be time to close the Collectibles Division. 6 7. The income statements for the BWB Product's operating divisions for 2021 are as follows: 8 9 Promotion Collectible BWB as a s Division s Division Whole 10 Sales 5300000 2860000 8160000 11 Less: Variable Expenses 3650000 1645000 5295000 12 Contribution Margin 1650000 1215000 2865000 13 Less: Traceable Fixed 943000 1275000 2218000 14 Segment Margin 707000 -60000 647000 15 Less: Common Fixed Costs 555000 16 Operating Income 92000 17 18 When Trent broke the news to the manager of the Collectibles Division, the manager 19 became upset. The manager thought that Trent was making a mistake and suggested 20 that Trent look at the Collectible's Division performance along its 2 product lines: 21 Sports Memorabilia and Coins/Stamps, Sports Memorabilia accounts for 60% 22 of the Collectible Divisions sales and variable costs. The traceable fixed costs 23 for Sports Memorabilia total $810,000 and the traceable fixed for Coins/Stamps 24 ran $245,000 in 2021. 35 26 a. Prepare s segment margin income statement for the Collectibles Division that 27 shows the segment margin generated by Sports Memorabilia and Coins/Stamps 28 for 2021. 29 30 b. Is Trent correct should the Collectibles Division be discontinued? Why or Why not? 31 Trent Weaver is reviewing the latest financial statements of BWB Products. For the second year in a row, the Collectibles Division is showing a negative segment margin. Trent believes it may be time to close the Collectibles Division The income statements for the BWB Product's operating divisions for 2021 are as follows: Sales Less: Variable Expenses Contribution Margin Less: Traceable Fixed Segment Margin Less: Common Fixed Costs Operating Income Promotions Division 5300000 3650000 1650000 943000 707000 Collectibles Division 2860000 1645000 1215000 1275000 -60000 BWB as a Whole 8160000 5295000 2865000 2218000 647000 555000 92000 When Trent broke the news to the manager of the Collectibles Division, the manager became upset. The manager thought that Trent was making a mistake and suggested that Trent look at the Collectible's Division performance along its 2 product lines: Sports Memorabilia and Coins/Stamps Sports Memorabilia accounts for 60% of the Collectible Divisions sales and variable costs. The traceable fixed costs for Sports Memorabilia total $810,000 and the traceable fixed for Coins/Stamps ran $245,000 in 2021. a. Prepare s segment margin income statement for the Collectibles Division that shows the segment margin generated by Sports Memorabilia and Coins/Stamps for 2021 b. Is Trent correct- should the Collectibles Division be discontinued? Why or Why not
