Mohave Corp, is considering eliminating a product from its Sand Trap line of beach umbrellas. This col ection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal Mchave's information related to the Sand Trap line is shown below. Segmented Income Statement for Mohaves Sand Trap Beach Umbrela Products 000 $60,000 $30,000 $150,000 $26,000 $29,000 4,000 59,000 28,500 2.000 52 600 Sales revenue Variable cosis 34,000 31 28,000 91 Contribution margin Segment margin Net operating income (oe8) Less: Direct Fixed costs Common fixed costs 17,840 1 8,920 44,600 Allocated based on total sales revenue Mohave has determined that el minating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectvely. Variable costs for these two models would increase proportionaiely. Although the direct fixed costs could be 0?minated, the common food costs are unavoidable. The common fixed costs would be redistributed to the remaining two products. Required: 1-a. Complete the table given belaw, if Mchave Corp drops the Azul line. (Do not round intermediate calculations. Round Common Fixed Costs to the nearest whole dollar.) Vorde Sales Revenue Variable Costs Contribution Margin Direct Fxed Costs Segment Margin Common Fued Costs Net operating income 1,900 2,500 4,400 1-b. Wl Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? Increase 2. Should Mohave drop the Azul model? O No Yes