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Pharoah Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows:

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Pharoah Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: Sales Variable expenses Contribution margin Advertising expense Depreciation expense Corporate expenses Total fixed expenses Operating income A $2.213,000 1.652,000 $561,000 $523,000 16.700 94,300 $634,000 $173,000) B $1,409.000 601,700 $807,300 $430,000 10.500 84,900 $525.400 $281.900 Total $1,802,900 $5,424.900 1,084,300 3,338,000 $718,600 $2,086,900 $520,000 $1.473,000 20,300 47,500 105,200 284,400 $645.500 $1,804,900 $73,100 $282,000 Advertising expense - Specific to each product. Depreciation expense - Specific to each product: no other use available, no resale value. Corporate expenses - Allocated based on number of employees. (a) Restate the income statement in segment margin format. A B Total $

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