Ine manufactures two different products. For many years, the company has been profitable and operates at full capacity. However, in the last two years le prices were reduced and selling expenses increased because of the competition. Budgeted data for next year are the followings: 20.000 $220 $130 AZ 10.000 $140 $100 Sales in units Sale price per unit Variable manufacturing costs Variable selling expenses Fixed MOH Fixed Selling expenses $30 $10 $600,000 $200.000 $400,000 $100,000 Additional information: a) All the fixed selling expenses are traceable to each products b) The fixed MOH include the following traceable fixed costs for each product $400.000 $300,000 c) The company is manufacturing at capacity and is selling all the units it produces. d) All traceable fixed costs are avoidable costs in case the segment is dropped. REQUIRED: 1. Calculate Contribution margin per unit of each product 2. Calculate segment margin for each product 3. The company's president is concerned about the results of next year as shown by the current income statement. After reviewing them, he asked the management stall to consider the following decisions to improve the performance of Adm2341 Inc.: a) Eliminate A2 immediately. b) Increase fixed traceable expenses (selling expenses) by $250,000 on product Al in order to increase its sales volume in units by 50%.! 3.1 Assume the president's proposed decisions had been implemented at the beginning of the next year. What is the impact (increase or decrease) of each of the two decisions on the contribution margin of each product? Show your calculations 3.2 Assume the president's proposed decisions had been implemented at the beginning of the next year. What is the impact (increase or decrease) of each of the two decisions on the segment margin of each product? Show your calculations. 4. Was the president correct in proposing that Product A2 be eliminated? Explain your answer. .................. ... ... . 1. Provide at least two qualitative factors that Adm2341 Company's management should consider before it drops A2