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

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Wildhorse Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: B Sales $2,235,000 $1,410,000 Variable expenses 1,698,000 601,200 Contribution margin $537,000 $808,800 Advertising expense $520,000 $429,000 Depreciation expense 16,700 10,700 Corporate expenses 92,300 84,100 Total fixed expenses $629,000 $523,800 Operating income $(92,000) $285,000 Total $1,806,500 $5,451,500 1,099,800 3,399,000 $706,700 $2,052,500 $521,000 $1,470,000 21,500 48,900 106,600 283,000 $649,100 $1,801,900 $57,600 $250,600 dy 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. (a) Restate the income statement in segment margin format. B Total $ $ C Corporate expenses - Allocated based on number of employees, Restate the income statement in segment margin format. A B Total

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