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Carla Vista Toys' management is considering eliminating product A, which has been showing a loss...

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Accounting

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Carla Vista 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 Total $1,403,000 $1,812,600 $5,458,600 $2,243,000 1,662,000 600,700 1,084,600 3,347,300 $581,006 $802.300 $728.000 $2.111.300 Sales Variable expenses Contribution margin Advertising expense Depreciation expense Corporate expenses $506,000 $426,000 $522.000 $1,454,000 15.200 10.800 21.500 47.500 91.900 81.400 106,500 279.800 $613,100 $518,200 $650,000 Total fixed expenses $1.781,300 ${32.100) $284,100 $78.000 Operating income $330,000 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 Sales Revenue Contribution margin

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