Segment Reporting - 4

Green Industries produces three profit centers: Profit Center X, Profit Center Y, and Profit Center Z. Information for the profit centers for the year is as follows:

	Profit Center X	Profit Center Y	Profit Center Z
Units produced and sold	5,000	9,000	12,000
Selling price per unit	$44	$28	$50
Variable expenses per unit	$32	$20	$38

The company's fixed costs totaled $212,000, of which $40,000 can be avoided if Profit Center X is dropped, $80,000 can be avoided if Profit Center Y is dropped, and $44,000 can be avoided if Profit Center Z is dropped.

Required:

a) Prepare segment income statements in good form.

b) Assuming that you are the CEO, what actions do you take?