Total Company $ 613,000 Product A Product B S 128,000 Product C $ 183,000 Sales Variable expenses Contribution margin Fixed expenses Operating income $ 302,000 $156,000 $ (10,000) 336,000 282,000 73,000 44,000 107,000 72,000 $ 35,000 $ 54,000 108000S 29,000 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 Total CompanyProductA $75,000 Product B S11,000 Product C $18,000 Direct foxed expenses S104,000 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 effect of the decision to discontinue product A on operating income? will r the XYZ if it discontinues Product b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporate-wide fixed expenses as described. (Round intermediate calculations to 2 decimal places.) XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2016 Total Company Product B Product C Sales Variable expenses Contribution margin Direct fixed expenses Common fixed expenses Operating incomeloss