Ivanhoe Toys management is considering eliminating product A, which has been showing a loss for several years. The companys annual income statement, is as follows:

		A		B		C		Total
Sales		$2,204,000		$1,405,000		$1,803,100		$5,412,100
Variable expenses		1,618,000		600,100		1,099,600		3,317,700
Contribution margin		$586,000		$804,900		$703,500		$2,094,400
Advertising expense		$523,000		$430,000		$520,000		$1,473,000
Depreciation expense		15,300		10,700		21,900		47,900
Corporate expenses		93,700		81,500		107,000		282,200
Total fixed expenses		$632,000		$522,200		$648,900		$1,803,100
Operating income		$(46,000)		$282,700		$54,600		$291,300

Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees.

(a)

Restate the income statement in segment margin format.

		A		B		C		Total
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses		$enter a total amount for the second part		$enter a total amount for the second part		$enter a total amount for the second part		enter a total amount for the second part
select between addition and deduction AddLess: select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses								enter a dollar amount
select an income statement item AdvertisingCommon fixed expensesContribution marginDepreciationDirect fixed expensesOperating profitSales RevenueSegment marginVariable expenses								$enter a total amount for this statement