Reshier Company Segmented Income Statement Model 1 Model 2 Model 3 Total Sales 225,000 $598,000 $603,500 1,426,500 Less variable cost of goods sold 97,000 171,120 332,400 600,520 Less commissions 4,500 25,000 23,250 V 52,750 123,500 401,880 247,850 773,230 Contribution margin Less traceable fixed expenses: Engineering Setting up Equipment rental Customer service Product margin Less common fixed expenses: Factory overhead Selling and admin. expense Operating income 54,750 5,925 V 14,325 75,000 44,450 X 47,228 X 103,657 X X x X x X x X x $ X X X 103,000 X 204,000 X X 2. Using your answer to Requirement 1, assume that Reshier Company is considering dropping any model with a negative product margin. What are the alternatives?