is this correct?

KEEP OR DROP A SEGMENT 2 3 NIKE senior management thinks it should drop the "Flash" line of sneakers, and keep its other sneaker product lines. Below is information regarding the Flash sneakers and the other sneaker product lines. 5 What is the change in Net Income if NIKE drops the Flash line? Thus, should NIKE drop the Flash line? 7 (Values in 000's) Other Sneaker Product Lines 8 9 Sales Revenue 10 Variable Cost 11 Contribution Margin 12 Fixed Cost* 13 Net Operating Income 14 15-common Fixed Cost is 45% of total fixed cost. 16 17 Required -Create the Segment Margin Income Statement (below) that would Flash Sneakers 3,000,000 1,560,000 1,440,000 1,850,000 ($410,000) $15,000,000 7,800,000 7,200,000 5,040,000 $2,160,000 result if NIKE decides to drop the Flash line (so the other sneaker product lines remain). Then determine the Change in Net Operating Income that would occur if NIKE drops the Flash line. 18 19 20 Sales Revenue $15,000,0o0 $7,800,000 $7,200,000o $2,772,000 $4,428,000 $3,100,500 $1,327,500 21 Variable Cost 22 Contribution Margin 23 Direct Fixed Cost 24 Segmented Margin 25 Common Fixed Costs 26 Net Operating Income 27 28 Change in NOI $ ($522,500)