View Policies Current Attempt in Progress Ivanhoe Equipment sells equipment to sports enthusiasts. Doug Ivanhoe, the company's president, just received the following income statement reporting the results of the past year. Baseball Soccer Basketball Total Sales revenue $1,280,000 $3,660,000 $2,408,000 $7,348,000 Variable cost of goods sold 863,000 2,379,000 1,937,600 5,179,600 Fixed cost of goods sold 116,600 190,200 167,600 474,400 Gross profit 300,400 1,090,800 302,800 1,694,000 Variable operating expenses 172,600 585,600 240,800 999,000 Fixed operating expenses 80,400 85,400 74,100 239,900 Common fixed costs 61,000 131,000 98,500 290,500 Operating income ($13,600) $288,800 ($110,600) $164,600 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. (a) Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Baseball Soccer Ba Sales Revenue $ Add : Variable Expenses e Textbook and Media Save for Later Last saved 1 day ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. (b) Should Doug close the baseball and basketball divisions? Doug consider closing the baseball division. Doug consider closing the basketball division.