Problem 8-29 Sheridan 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 $2,216,000 1,617,000 $599,000 $513,000 15,800 92,200 $621,000 $(22,000) $1,408,000 600,100 $807,900 $426,000 10,000 83,100 $519,100 $288,800 Total $1,816,400 $5,440,400 1,082,2003,299,300 $734,200 $2,141,100 $520,000 $1,459,000 21,200 47,000 106,000 281,300 $647,200 $1,787,300 $87,000 $353,800 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. Restate the income statement in segment margin format. Restate the income statement in segment margin format. What would be the effect on income if product A were dropped? Net income would Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $11, its variable costs were $4, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile? (Round answers to decimal places, e.g. 125.) Units