Management is surprised by the handbag product line's poor showing and would like to have the product line segmented by market. The following information is available about the markets in which the handbag line is sold: Sales Traceable fixed expenses: Variable expenses Advertising as Traceable fixed expenses: Common fixed expenses: a percentage of sales R Domestic R200,000 R 47,000 All of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which the product is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined as markets. Handbag Markets Foreign R175,000 R 45,000 Handbags 0 R 43% OR Sales Market Domestic 88% 0 R OR Foreign 0 0 3. Refer to the statement prepared in (1) above. The sales manager wants to run a special promotional campaign on one of the product lines over the next month. A marketing study indicates that such a campaign would increase sales of the Garments product line by R207,000 or sales of the shoes product line by R152,000. The campaign would cost R37,000. a. Compute the increased operating income for these product lines for the expected increased sales. Increased operating income Shoes R Garments Garments R b. Based on the above results, which product line should be chosen? Shoes