The remaining fixed expenses are considered to be corporate-wide expenses that have been allocated to each product line based on sales revenue.The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here:The segmented income statement for XYZ Company for the year ended December 31, 2016, follows:

XYZ Company
Segmented Income Statement
For the year ended 12/31/2016
Total Company	Product A	Product B	Product C
Sales	615000	306000	123000	186000
variable expenses	276000	150000	55000	71000
contribution margin	339000	156000	68000	115000
fixed expenses	280000	162000	42000	76000
Operating income	59000	(6000)	26000	39000

The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: