Product line Operations of Borderland Oil Drilling Services are separated into two geographical divisions: United States and Mexico. The operating results of each division for the year are as follows: Sales Variable costs United States Mexico Total Contribution margin $11,520,000 $5,760,000 $17,280,000 (7,584,000) (3,340,800) (10,924,800) $3,936,000 $2,419,200 $6,355,200 Direct fixed costs Segment margin Corporate fixed costs Operating income (loss) (1,280,000) (784,000) (2,064,000) $2,656,000 $1,635,200 $4,291,200 (3,040,000) (1,424,000) (4,464,000) $(384,000) $211,200 $(172,800) Corporate fixed costs are allocated to the divisions based on relative sales. Assume that all of a division's direct fixed costs could be avoided by eliminating that division. Because the U.S. division is operating at a loss, Borderland's president is considering eliminating it. a. If the U.S. division had been eliminated at the beginning of the year, what would have been Borderland's pre-tax income? $ 0 b. Recast the income statements into a more meaningful format than the one given. Note: Use a negative sign for expenses and losses. United States Mexico Total Sales $ Variable costs 0 $ 0 0 $ 0 0 0 Direct fixed costs 0 0 0 Segment margin $ 0 $ 0 $ 0 Corporate fixed costs 0 Operating income (loss) $ 0