Trio Sports Manufacturer produces equipment for three sports: baseball, basketball, and golf. The accountants prepared a segmented contribution margin statement for the past year based on the three types of products manufactured as shown below. The CEO is concerned with the basketball equipment segment as it has been showing a loss for the past few years.

Trio Sports Manufacturer Segmented Contribution Margin Statement For the Year Ended December 31, 2019
	Baseball	Basketball	Golf	Total
Revenue	$616,000	$750,000	$478,000	$1,844,000
Variable Costs	$250,000	$220,000	$276,000	$746,000
Contribution Margin	$366,000	$530,000	$202,000	$1,098,000
Fixed Costs	$272,000	$610,000	$136,000	$1,018,000
Income from Operations	$94,000	$-80,000	$66,000	$80,000

Recommend whether Trio should keep or drop the basketball equipment product line based on the following independent scenarios: Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in income. Indicate keep or drop using the drop-down lists. a) If the line is dropped, assume that all the fixed costs relating to the basketball equipment segment would remain with the company. Change in Income from Operations: $Answer Trio should Answerdropkeep the basketball line b) Assume that all the fixed costs relating to the basketball segment would no longer be incurred by the company if the product line is dropped. Change in Income from Operations: $Answer Trio should Answerdropkeep the basketball line c) Only 30% of the fixed costs relating to the basketball segment would remain with the company if the product line is dropped. Change in Income from Operations: $Answer Trio should Answerdropkeep the basketball line