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Jim Coston was reviewing the latest income statement for Trenton Communications. For the second year in a row, the Audio division was showing a negative

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Jim Coston was reviewing the latest income statement for Trenton Communications. For the second year in a row, the Audio division was showing a negative segment margin and Jim thought it was time to close the division to increase the company's operating income. The income statement that he examined follows. Sales revenue Less variable expen Contribution Less traceableed expenses Segment magin Common fixed costs Net operating income Video Audio Division Division Total $5,305,300 $2,862.000 $8,167,300 3,663,700 1.646,900 5,310,600 1,641,600 1.215.100 2,856,700 948,900 1.280,200 2.229.100 $692,700 $(65,100) 627.600 576.000 $51,600 When Jim broke the news, Chloe Sams, manager of the Audio division, was upset. Chloe thought that Jim could be making a snap judgment, and suggested that he look at the division's detailed operating results. The Audio division is composed of two groups, Streaming and CD. Streaming accounts for 75% of the division's sales and contribution margin: CD accounts for the other 25%, Stranminneteranble for Jim Coston was reviewing the latest income statement for Trenton Communications. For the second year in a row, the Audio division was showing a negative segment margin and Jim thought it was time to close the division to increase the company's operating income. The income statement that he examined follows. Sales revenue Less variable expen Contribution Less traceableed expenses Segment magin Common fixed costs Net operating income Video Audio Division Division Total $5,305,300 $2,862.000 $8,167,300 3,663,700 1.646,900 5,310,600 1,641,600 1.215.100 2,856,700 948,900 1.280,200 2.229.100 $692,700 $(65,100) 627.600 576.000 $51,600 When Jim broke the news, Chloe Sams, manager of the Audio division, was upset. Chloe thought that Jim could be making a snap judgment, and suggested that he look at the division's detailed operating results. The Audio division is composed of two groups, Streaming and CD. Streaming accounts for 75% of the division's sales and contribution margin: CD accounts for the other 25%, Stranminneteranble for

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