SITUATION 2: Add or Drop Segment CEG Ski Corporation, manufactures wakeboards and knee boards. The knee board product division has been steadily losing money for the past couple of years. Nearly $20,000 each month. Should CEG discountinue the knee board division? Below is additional information. Sales Total Wakeboards Knee Boards 750,000 $ 500,000 $ 250,000 420,000 $ 240,000 $ 180,000 330,000 $ 260,000 $ 70,000 Variable expenses Contribution margin Fixed expenses Traceable Advertising Depreciation - Special Equipment Salary of Product Line Managers Allocated Common Fixed Costs Net operating income 40,000 $ 30,000 $ 60,000 $ 50,000 $ 150,000 $ 15,000 $ 14,000 $ 30,000 $ 30,000 $ 171,000 $ 25,000 16,000 30,000 20,000 (21,000)