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Mohave Corp, is considering eliminating a product from ts Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on

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Mohave Corp, is considering eliminating a product from ts 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 harve 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 Sales rewenue Variable costs 000 $30 34,000 31.000 26.000 91.000 526,000 $29,000 $4,000 $ 59,000 Contribution margin Less. Direct Fixed costs 1,900 2.500 2,000 6.,400 Sogment margin Common fixnd costs" 17,840 17 840 8.92044800 Not 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) Salos Revenue Variable Costs Contribution Margin Direct Fixed Costs Segment Margin Common Fixed Costs Net operating income

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