Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection 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. Mohave's information related to the Sand Trap line is shown below Segmented Income Statement for Mohave's Sand Trap Beach Umbrella Products Verde 34.000 31.000 26,000 2,500 17,840 Total 91,000 6.400 44,600 Indigo Azul Sales revenue $60,000 $60,000 $30,000 $150,000 $26,000 $29,000 $ 4,000 $ 59,000 $24,100 $26,500 $ 2,000 $ 52,600 $6,260 8,660 (6,920) $ 8,000 Variable costs Contribution margin Less: Direct Fixed costs 1,900 2.000 Segment margin Common fixed costs* 17,840 8,920 Net operating income (loss) Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products Required 1-a. Complete the table given below, if Mohave Corp drops the Azul line. (Do not round intermediate calculations. Round Common Fixed Costs to the nearest whole dollar.) Indigo Verde Total Sales Revenue Variable Costs Contribution Margin Direct Fixed Costs Segment Margin Common Fixed CostS Net operating income (loss) 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? Change in Net Operating Income (Loss) by