PA8. LO 10.4 Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the company's direct fixed costs can be avoided if a segment is dropped. This information is available for the segments. Sales Variable costs Contribution margin Direct fixed costs Allocated common fixed costs Net income Custom Embroidery $60,000 30,000 30,000 22,000 12,000 $(4,000) Logo Apparel $250,000 110,000 140,000 40,000 50,000 $ 50,000 A. What will be the impact on net income if the embroidery segment is dropped? B. Assume that if the embroidery segment is dropped, apparel sales will increase 10%. What is the impact on the contribution margin and net income solely for the apparel? C. Identify one cost that is not relevant in this analysis