The following income statement has been prepared for the most recent period for the kitchen segment of a furniture & home dcor company. Segment Income Statement Kitchen Sales $700,000 $245,000 21,000 56,000 322,000 378,000 Less: Variable expenses Variable manufacturing costs Variable shipping costs Commissions Contribution margin Less: Fixed expenses General factory overhead Salary of line manager Depreciation of equipment Advertising Factory rent General admin. expenses Operating income / (loss) 41,000 20,000 74,000 65,000 99,500 93,500 393,000 (15,000) The company is deciding if it should keep or drop the kitchen division based on the following facts: General factory overhead would remain as a fixed expense if the kitchen segment is dropped. General administrative expenses would be reduced by 20% if the kitchen segment is dropped. . If the company drops this segment, it will gain a contribution margin of $43,000 by manufacturing other products. The company will continue to pay rent to manufacture other products. What is the contribution margin lost if the kitchen segment is dropped? (enter as a positive number) (1 mark) Number What are the total fixed expenses that can be avoided if the kitchen segment is dropped? (enter as a positive number) (4 marks) Number What is the contribution margin gained if the company drops the kitchen segment? (1 mark) Number What is the net advantage or disadvantage of dropping this segment? (1 mark) Enter a disadvantage/loss as a negative number. Negative numbers should be entered with a negative sign, not brackets. Number Should the kitchen segment be kept or dropped? (1 mark) The kitchen segment should be kept. The kitchen segment should be dropped