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3Peat Sports Manufacturer produces equipment forthree sports: baseball, basketball, and golf. The accouniants prepared a segmented contribution margin statement for the past year based on the three types of producls manufactured as shown below. The CEO is concerned with the basketball equipment segment as it has been showing a loss for the past few years. Revenue $550,000 $433,000 $741,000 $1,024,000 Variable C0515 $252,000 $237,000 $239,000 $353,000 Contribution Margin $1,056,000 Fixed C0513 $323,000 $225,000 $406,000 $954,000 lncomefromOperations $5,000 $459,000 $96,000 $102,000 Recommend whether 3Peat should keep or drop the basketball equipment product line based on the following independent scenarios: Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in income. Indicate keep or drop using the dropdown Iisis. a] If the line is dropped, assume that all the xed costs relating to the basketball equipment segment would remain with the company. Change in Income from Operations: $ 3Peat should keep: V tl'rebaskietballline b] Assume that all the xed costs relating to the basketball segment would no longer be incurred bythe companyr it the product line is dropped. U Change in Income from Operations: i 3Peat should drop 6 V tl'rebaskietballline 1:) Only 30% of the xed cosis relating to the basketball segment would remain with the born pan):I if the product line is dropped. Change in Income from Operations: i 3Peatshould drop 5 V 'rebasleetballline U U