In a drop or retain a segment decision, a company will find which of the following income statement formats most useful?

a. A segmented income statement in the contribution margin format, which separates traceable fixed costs from common fixed costs.

b. A traditional income statement in the full costing format that is used for financial reporting.

c. A segmented income statement in the full (traditional) costing format that is used for financial reporting.

d. Income statements are of no use in making this type of decision.