The segmented income statement for XYZ Company for the year ended December 31, 2016, follows XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2016 Product A $303,000 8 Product S 111,000 5 176,000 72 590,000 276.000 Variable expenses Contibution margin Fxed expenses Operating income 1400-5100 53.000 49000 4000 75000 S (8.000) s 29.000 S 25,000 The company is concerned about e e performance o product A, and you have been asked o analyze he stua on en recommend io ne pres denthemer o cont ue o, discontinue the product. During your investigation, you discover that certain fixed expenses are traceable drectiy to each product line as indicated here Company ProductA Product B ProductC 18.000 $11,000 $105,000 576,000 Divect fuxed expenses The remaining fixed expenses are considered to be corporate-wide expenses that have been allocated to each product line based on sales revenue Required: a. What will be the efect of the decision to discontinue product A on operating income? b. Assume that product A is dscontnued Prepare a segmented income statement for the remaining products Allocate corporate-wide fixed expenses as descrbed (Round intermediate calculations to 2 decimal places.) Segmented income Statement For the Year Ended December 31, 2016 Product BProduct o Total C Vantable expenses Contnbution margn Drect fxed expenses Common fixed expenses c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more aoprop itely designed smd statement Segmented income Statement For the Year Ended December 31, 2016 Total I Company Product A Product Sales Contribution mag Duect fxed expenses Segment margin Common fixed expenses