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 $301,000 Product B $130,000 Product C Sales Varable expenses $ 618.000 $187,000 73,000115,000 $ 40,000 339,000151,00 Foxed expenses Operating income 5 51,000 S (12,000) 5 23,000 The company is concemed 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 investigaion, you discover that certain fixad expenses are traceable directly to each product line as indicated here: Total Company $104.000 Product A $76,000 Product B $10,000 Product C $18,000 Direct fxod expenses The remaining xed 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 discontinued. Prepare a segmented income statement for the remaining products. Allocate corporate-wide fxed expenses as descnibed. (Round intermediate calculations to 2 decimal places.) Segmented Income Statement For the Year Ended December 31, 2016 Total Company Product B Product C Saies Variable expenses Contribution margin Direct fixed expenses Common fixed expenses c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Segmented Income Statement For the Year Ended December 31, 2016 Total Product A Product B Product C Sales Variable expenses Contribution margin Direct fixed expenses Segment margin Common fixed expenses Operating incomeoss