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Problem 3 Discontinuing A Segment or Product: La George's Donuts Store Co., operates two stores. One on Haggerty Rd. in Livonia, and the Other on Ford Rd. in Canton. Results for the month Of May, which is representative Of all months, are as follows: Sales revenue Variable expenses Contri bution margi n Direct fixed expenses Common fixed expenses Total fixed expenses Operating income Livonia store 80,000 32,000 48,000 20,000 4,000 24,000 24,000 Ca nton store 120,000 84,000 36,000 40,000 6,000 46,000 (10,000) Total $ 200,000 116,000 84,000 60,000 10,000 70,000 14,000