Show Attempt History Current Attempt in Progress Sandhill Toys' management is considering eliminating product A, which has been showing a loss for several years. The compar annual income statement, is as follows: Sales Variable expenses Contribution margin Advertising expense Depreciation expense Corporate expenses Total fixed expenses Operating income A (a) $2,221,000 1,668,000 $553,000 $514,000 15,300 94,700 $624,000 $(71,000) B $1,402,000 601,300 $800,700 $427,000 10,600 84,400 $522,000 $278,700 C $1,819,600 1,083,800 $735,800 20,100 105,900 $2,089,500 $522,000 $1,463,000 $648,000 Total $87,800 $5,442,600 3,353,100 46,000 285,000 $1,794,000 $295,500 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. 27

Sandhill 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: 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