P5.3 (LO 1, 2, 3, 4, 5), AN A value-driven car manufacturer, Dryvz, started its business more than 50 years ago, making and selling a sedan body style. Sedans were popular at the time, and this one drove the success of Dryvz for years due to its practical yet stylish nature. As times changed, Dryvz designed models in different body styles, and those models have outpaced sedans, as follows. Sales Sedan SUV Truck Van $1,200,000 $4,200,000 $3,900,000 $2,000,000 Variable costs Contribution margin Fixed costs 700,000 2,000,000 500,000 2,200,000 800,000 900,000 Operating income (loss) $ (300,000) $1,300,000 1,800,000 1,100,000 2,100,000 900,000 1,200,000 800,000 $ 100,000 $ 900,000 The income statements above reflect the second consecutive year the sedan category has lost money. Dryvz is concerned about dropping this vehicle, however, since the company's success was originally built on it.