Wildhorse Toys management is considering eliminating product A, which has been showing a loss for several years. The companys annual income statement, is as follows:

		A		B		C		Total
Sales		$2,292,000		$1,400,000		$1,818,500		$5,510,500
Variable expenses		1,658,000		600,200		1,091,900		3,350,100
Contribution margin		$634,000		$799,800		$726,600		$2,160,400
Advertising expense		$530,000		$429,000		$520,000		$1,479,000
Depreciation expense		17,100		10,600		21,900		49,600
Corporate expenses		90,600		80,700		105,600		276,900
Total fixed expenses		$637,700		$520,300		$647,500		$1,805,500
Operating income		$(3,700)		$279,500		$79,100		$354,900

Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees.

Advertising expense Depreciation expense Corporate expenses Total fixed expenses Ogerating income $530,000 17,100 90,500 5637,700 ${2,700) $429,000 10,600 89,700 $520,300 $279,500 $520,000 21.900 105,500 5647,500 $79,100 $1,479,000 49.600 275,000 $1,305,500 $354.900 Advertising expense - Specific to each product. Deandation expense - Specific to each modunt; no other usava abie, na rosale value. Corporate expenses - Allocated based on number of employees. (a) Your answer is correct. Restate the income statement in segment margin farmat. Sales Revenue Total $2292000 5400000 11818scC510500 1600,200 1091900 13350100 1799900 726600 2160400 Variable experses Centribution margin Less Direct lixed expenses Advertising 429000 29000 2479900 Depreciation Segment margin $165900 $3602003264700 731400 non fixed expenses -276,900 Operating prots Attempts: 2 of 15 used *(b) Your answer is partially correct. Try again. What would be the effect on income if product A were dropped? | 107700 Net Income would decrease by Attempts: 6 of 15 used *(c) The parts of this question must be completed in ander. This part will be available when you complete the part above. 200-2015