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Linus Ltd. is a retailer of dolls. The store carries three products: Hurley, Sayid and Kate. Income statements for the three products are shown below. Hurley Sayid Kate Sales $300,000 $250,000 $600,000 Variable expenses 170,000 200,000 300,000 Contribution margin 130,000 50,000 300,000 Fotos! Fixed costs 80,000 60,000 120,000 Net income $50,000 ($10,000) $180,000 st Fixed costs of $150,000 have been allocated to the three dolls on the basis of their sales revenues. a. Required - The owner of the store, Benjamin, is concerned about the profit performance of the Sayid doll and is considering dropping it. If the Sayid doll is dropped, sales of the Hurley doll will increase by 20 percent and sales of the Kate doll will drop by 15 percent. Should the Sayid doll be dropped? Use incremental analysis and show all calculations. Assume that direct fixed costs are avoidable. b. Ignore part a. Suppose that a different doll, the Jack doll, could be acquired. If the Jack doll is introduced, there will be no impact on the sales of the Hurley doll, but the sales of the Kate doll will increase by 10%. The sales of the Jack doll will be 15% higher than those of the Sayid doll. The contribution margin ratio of the Jack doll will be 30%. The direct fixed costs of the Jack doll will be the same as those of the Sayid doll. Should the Jack doll replace the Sayid doll